RE:RE:RE:Baytex Energy Secures Revised Credit Facility Credit Facilities
At March 31, 2024, we had $849.9 million of principal amount outstanding under our revolving credit facilities which total US$1.1 billion ($1.5 billion) (the "Credit Facilities"). The Credit Facilities are secured and are comprised of a US$50 million operating loan and a US$750 million syndicated revolving loan for Baytex and a US$45 million operating loan and a US$255 million syndicated revolving loan for Baytex's wholly-owned subsidiary, Baytex Energy USA, Inc. On May 9, 2024, we extended the maturity of the Credit Facilities from April 1, 2026 to May 9, 2028. There are no changes to the loan balances or financial covenants as a result of the amendment. As a result of the amendment, borrowing in Canadian funds currently based on the banker's acceptance rate will be replaced with borrowings based on the Canadian Overnight Repo Rate Average ("CORRA").
There are no mandatory principal payments required prior to maturity which could be extended upon our request. The Credit Facilities contain standard commercial covenants in addition to the financial covenants detailed below. Advances under the Credit Facilities can be drawn in either Canadian or U.S. funds and bear interest at the bank’s prime lending rate, bankers’ acceptance discount rates or secured overnight financing rates ("SOFR"), plus applicable margins.
The weighted average interest rate on the Credit Facilities was 8.1% for Q1/2024 compared to 6.0% for Q1/2023. The interest rate on our Credit Facilities has increased due to an increase in the margins applicable to our Credit Facilities in addition to higher underlying benchmark rates in 2024 relative to the same period in 2023.
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- from BTE Q1/2024 REPORT
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