Moody’s gives Denbury notes Caa1

Moody's Investors Service said it assigned a Caa1 rating to Denbury Resources Inc.’s senior secured second-lien notes due 2022.

The notes were issued as part of two exchange offerings, the agency explained.

Denbury's other ratings are unchanged.

"Denbury's debt exchange transactions reduced the principal amount of outstanding debt by approximately $184 million, a credit positive, and if the newly issued convertible debt is converted to equity, debt balances will be reduced further," James Wilkins, Moody's vice president, said in a news release.

The agency said the Caa1 rating reflects the more senior priority of claim status compared to the senior unsecured convertible notes and subordinated notes, but more junior status compared to the first-lien secured revolver.

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