Denbury Announces Results of Exchange Offers
January 08 2018 - 6:30AM
Denbury Resources Inc. (NYSE:DNR) (“Denbury” or the “Company”)
announced that upon the January 5, 2018 expiration of its
previously announced private exchange offers (the “Exchange
Offers”), eligible holders of outstanding senior subordinated notes
due 2021, 2022 and 2023 (collectively, the “Old Notes,” as defined
below), agreed to exchange approximately $174.3 million in
aggregate principal amount of Old Notes for approximately $133.5
million in “New Notes” (as defined below).
The New Notes consist of approximately $74.1
million in aggregate principal amount of 9¼% Senior Secured Second
Lien Notes due 2022 (the “New 9¼% Second Lien Notes”) and
approximately $59.4 million in aggregate principal amount of new 5%
Convertible Senior Notes due 2023 (the “New 5% Convertible Senior
Notes”).
The Old Notes exchanged consist of approximately
$11.6 million in aggregate principal amount of 6⅜% Senior
Subordinated Notes due 2021 (the “2021 Notes”), approximately $94.2
million in aggregate principal amount of 5½% Senior Subordinated
Notes due 2022 (the “2022 Notes”), and approximately $68.5 million
in aggregate principal amount of 4⅝% Senior Subordinated Notes due
2023 (the “2023 Notes”).
Combining the previously announced privately
negotiated note exchanges with institutional investors that closed
on December 6, 2017, and the exchanges described above which are
scheduled to close on January 9, 2018, the Company will have issued
approximately $455.7 million aggregate principal amount of New 9¼%
Second Lien Notes, approximately $59.4 million aggregate principal
amount of New 5% Convertible Senior Notes, and approximately $84.7
million aggregate principal amount of new 3½% Convertible Senior
Notes due 2024 (“New 3½% Convertible Senior Notes”) in exchange for
approximately $11.6 million in aggregate principal amount of its
2021 Notes, approximately $458.3 million in aggregate principal
amount of its 2022 Notes and approximately $314.3 million in
aggregate principal amount of its 2023 Notes, all as reflected in
the table below.
|
|
|
|
|
|
|
Amounts
in millions |
|
Principal AmountOutstanding as ofSeptember 30,
2017 |
|
Principal Exchanged |
|
Pro Forma PrincipalAmount Outstandingupon
January 9, 2018Closing |
Old Notes
Exchanged |
|
|
|
|
|
|
|
|
|
|
|
|
6⅜%
Senior Subordinated Notes due 2021 |
|
$ |
215.1 |
|
|
|
$ |
(11.6 |
) |
|
|
$ |
203.5 |
|
|
5½%
Senior Subordinated Notes due 2022 |
|
|
772.9 |
|
|
|
|
(458.3 |
) |
|
|
|
314.6 |
|
|
4⅝%
Senior Subordinated Notes due 2023 |
|
|
622.3 |
|
|
|
|
(314.3 |
) |
|
|
|
308.0 |
|
|
New Notes
Issued in Exchange Transactions |
|
|
|
|
|
|
|
|
|
|
|
|
9¼%
Senior Secured Second Lien Notes due 2022 |
|
|
— |
|
|
|
|
455.7 |
|
|
|
|
455.7 |
|
|
5%
Convertible Senior Notes due 2023 |
|
|
— |
|
|
|
|
59.4 |
|
|
|
|
59.4 |
|
|
3½%
Convertible Senior Notes due 2024 |
|
|
— |
|
|
|
|
84.7 |
|
|
|
|
84.7 |
|
|
Total (1) |
|
$ |
1,610.3 |
|
|
|
$ |
(184.4 |
) |
|
|
$ |
1,425.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Total debt principal balances in
the table above reflect only those issuances impacted in the recent
exchange transactions, and are not intended to reflect the
Company’s total debt principal outstanding.
Effective upon the January 9th closing, the two
sets of exchanges will result in an aggregate net reduction of
outstanding debt principal of approximately $184 million.
This aggregate net debt reduction would increase to approximately
$269 million if all of the New 3½% Convertible Senior Notes convert
to Denbury common stock, and would increase to approximately $329
million if all of the New 5% Convertible Senior Notes also convert
into Denbury common stock.
The New Notes have not been registered under the
Securities Act of 1933, as amended, or under any state securities
laws, and may not be offered or sold within the United States, or
to or for the account or benefit of any U.S. person, absent
registration or an applicable exemption from registration
requirements.
This press release contains forward-looking
statements that involve risks and uncertainties that are based on
assumptions that management believes are reasonable based on
currently available information.
Denbury is an independent oil and natural gas
company with operations focused in two key operating areas: the
Gulf Coast and Rocky Mountain regions. The Company’s goal is
to increase the value of its properties through a combination of
exploitation, drilling and proven engineering extraction practices,
with the most significant emphasis relating to CO2 enhanced oil
recovery operations. For more information about Denbury,
please visit www.denbury.com.
DENBURY CONTACTS:
Mark C. Allen, Senior Vice President and Chief Financial Officer, 972.673.2000
John Mayer, Director of Investor Relations, 972.673.2383
Denbury Resources (NYSE:DNR)
Historical Stock Chart
From Aug 2024 to Sep 2024
Denbury Resources (NYSE:DNR)
Historical Stock Chart
From Sep 2023 to Sep 2024