Published on 4/16/2014 in the Prospect News High Yield Daily.
New Issue: Denbury sells upsized $1.25 billion 5½% eight-year notes at par
By Paul A. Harris
Portland, Ore., April 16 - Denbury Resources Inc. priced an upsized $1.25 billion issue of eight-year senior subordinated notes (B1/BB/) at par to yield 5½% on Wednesday.
The quick-to-market deal was upsized from $1.1 billion.
The yield printed on top of yield talk.
Wells Fargo Securities LLC is the left bookrunner for the public offer. BofA Merrill Lynch, Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Credit Agricole CIB and RBC Capital Markets were the joint bookrunners.
The Plano, Texas-based independent oil and natural gas company plans to use the proceeds to fund the tender offer for its 8¼% senior subordinated notes due 2020, with any remaining proceeds to repay a portion of revolver debt or for general corporate purposes.
| Issuer: | Denbury Resources Inc.
|
| Amount: | $1.25 billion, increased from $1.1 billion
|
| Maturity: | May 1, 2022
|
| Securities: | Senior subordinated notes
|
| Left bookrunner: | Wells Fargo Securities LLC
|
| Joint bookrunners: | BofA Merrill Lynch, Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, Credit Agricole Securities (USA) Inc., RBC Capital Markets LLC
|
| Co-managers: | BBVA Securities Inc., CIBC World Markets Corp., Comerica Securities Inc., Capital One Securities Inc., Mitsubishi UFJ Securities (USA) Inc., Scotia Capital (USA) Inc., UBS Securities LLC, ING Financial Markets LLC, Santander Investment Securities Inc., SunTrust Robinson Humphrey Inc., Fifth Third Securities Inc., KeyBanc Capital Markets Inc., SMBC Nikko Capital Markets Ltd., U.S. Bancorp Investments Inc.
|
| Coupon: | 5½%
|
| Price: | Par
|
| Yield: | 5½%
|
| Spread: | 313 bps
|
| Call protection: | Three years
|
| Trade date: | April 16
|
| Settlement date: | April 30
|
| Ratings: | Moody's: B1
|
| Standard & Poor's: BB
|
| Distribution: | SEC registered
|
| Price talk: | 5½% area
|
| Marketing: | Quick to market
|
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