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BAYTEX ENERGY TRUST: Baytex Energy Trust Announces Closing of Offering of Debentures and Redemption of U.S. Notes

^{Published on 2009-08-26 07:23:57 - Market Wire}
 

CALGARY, ALBERTA--(Marketwire - Aug. 26, 2009) - Baytex Energy Trust ("Baytex") (TSX:BTE.UN) (NYSE:BTE) announced today the closing of its offering of $150 million principal amount of 9.15% Series A senior unsecured debentures due August 26, 2016 (the "Debentures") and the redemption of the senior subordinated notes of Baytex Energy Ltd. effective September 25, 2009.

The Debentures were placed by a syndicate of agents led by TD Securities Inc. that also included BNP Paribas (Canada) Securities Inc., CIBC World Markets Inc., National Bank Financial Inc., RBC Dominion Securities Inc., Scotia Capital Inc., Societe Generale Valeurs Mobilieres Inc. and Credit Suisse Securities (Canada), Inc.

Baytex intends to use the net proceeds from the offering of the Debentures of $147 million (after agents' fees but before deduction of other offering expenses), along with funds drawn on its $515 million credit facility, to fund the redemption price for the following senior subordinated notes of its subsidiary, Baytex Energy Ltd.: 9.625% notes due July 15, 2010 (principal amount US$179,699,000) and 10.5% notes due February 15, 2011 (principal amount US$247,000), which have been called today for redemption effective September 25, 2009.

This offering was made by way of a prospectus supplement dated August 20, 2009 to Baytex's $600 million short form base shelf prospectus dated July 28, 2009. The prospectus supplement and the short form base shelf prospectus are accessible on SEDAR at [ www.sedar.com ].

The Debentures have not been and will not be registered under the United States Securities Act of 1933, as amended or any state securities laws and have not been offered or sold in the United States or to any U.S. person.

Baytex Energy Trust is a conventional oil and gas income trust focused on maintaining its production and asset base through internal property development and delivering consistent returns to its unitholders. Baytex's trust units are traded on the Toronto Stock Exchange under the symbol BTE.UN and on the New York Stock Exchange under the symbol BTE.

All dollar amounts in this press release are Canadian dollars, unless otherwise noted.

Advisory Regarding Forward-Looking Statements

In the interest of providing Baytex's unitholders and potential investors with information regarding Baytex, including management's assessment of Baytex's future plans and operations, certain statements in this press release are "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and "forward-looking information" within the meaning of applicable Canadian securities legislation (collectively, "forward-looking statements"). Specifically, this press release contains forward-looking statements relating to: the use of the net proceeds of the offering; and the redemption of the senior subordinated notes of Baytex Energy Ltd. The forward-looking statements contained in this press release speak only as of its date and are expressly qualified by this cautionary statement.

These forward-looking statements are based on certain key assumptions. The reader is cautioned that such assumptions, although considered reasonable by Baytex at the time of preparation, may prove to be incorrect. Actual results achieved during the forecast period will vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors which are discussed in Baytex's Annual Information Form, Form 40-F and Management's Discussion and Analysis for the year ended December 31, 2008, as filed with Canadian securities regulatory authorities and the U.S. Securities and Exchange Commission.

There is no representation by Baytex that actual results achieved during the forecast period will be the same in whole or in part as those forecast and Baytex does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities law.