Denbury Announces Pricing and Upsizing of $450 Million Offering of new 7.5% Senior Secured Second Lien Notes due 2024
August 14 2018 - 11:04PM
Denbury Resources Inc. (NYSE: DNR) (“Denbury” or the “Company”)
today announced the pricing and upsizing to $450 million of its
previously announced private offering (the “Offering”) of $400
million aggregate principal amount of Senior Secured Second Lien
Notes due 2024 (the “New Second Lien Notes”). The New Second
Lien Notes will bear interest at a per annum rate of 7.5% and were
sold at an issue price of 100%. The Offering is expected to
close on August 21, 2018.
The covenants and priority of the New Second
Lien Notes, along with the collateral securing the New Second Lien
Notes, will be substantially similar to those of the Company’s
existing second lien notes, and the New Second Lien Notes will
become the Company’s general senior secured obligations, secured by
second-priority liens on all the assets that secure the Company’s
senior secured bank credit facility. The Company expects to
use the net proceeds from the Offering to repay all of its
outstanding borrowings under its senior secured bank credit
facility, which were $410 million as of July 31, 2018, and to
use the remaining proceeds to pay related fees and expenses and for
general corporate purposes.
The New Second Lien Notes have not been and will
not be registered under the U.S. Securities Act of 1933, as
amended, or under any state or other securities laws, and the New
Second Lien Notes will be issued pursuant to an exemption
therefrom, 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 does not constitute an offer
to sell or a solicitation of any offer to buy any securities, nor
shall there be any sale of any securities in any jurisdiction in
which such offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of any such
jurisdiction.
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.
DENBURY CONTACTS:
Mark C. Allen, Executive Vice President and Chief Financial Officer, 972.673.2000
John Mayer, Director of Investor Relations, 972.673.2383
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