10:58 AM EDT, 03/14/2024 (MT Newswires) -- Fitch Ratings said Thursday that it has assigned a BB-/RR3 rating to Baytex Energy's ( BTE ) proposed senior unsecured notes offering.

The company plans to use the net proceeds to redeem the company's 8.75% 2027 senior notes and repay a portion of credit facility borrowings. The notes will be guaranteed by all material subsidiaries of Baytex.

"Baytex's rating reflects its asset diversity and headroom under Fitch's upgrade EBITDA leverage sensitivity with leverage expected below 1.5x during Fitch's forecast period," Fitch noted.

The company's shares rose 1.2% on last look on Thursday.

Price: 4.43, Change: +0.05, Percent Change: +1.09