The threaded end of one of hundreds of drill pipes is shown in front of the Baytex Energy Ltd.'s Pembina oil rig near Pigeon Lake, Alta., in 2012.Norm Betts/Bloomberg
Baytex Energy Corp.'s $500-million equity issue has sold out, as investors snapped up shares in the latest Canadian energy company to turn to capital markets to improve its debt position.
The underwriters closed the books on the issue Thursday morning, according to an investment industry source. The proportion of institutional versus retail buyers was not immediately known.
The bought deal, announced late Wednesday, was led by Bank of Nova Scotia and the Royal Bank of Canada.
A host of energy producers has issued stock in recent months, as the collapse in oil prices has reduced the cash flow needed to invest in drilling, pay dividends and keep debt in check.
Baytex followed such other companies as Cenovus Energy Inc. and Encana Corp., which also issued large amounts of stock to bolster their balance sheets.