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Denbury tenders for $426.4 million 9¾% notes, $224.9 million 9½% notes
By Susanna Moon
Chicago, Jan. 22 - Denbury Resources Inc. said it began cash tender offers for its $426.4 million of outstanding 9¾% senior subordinated notes due March 2016 and its $224.9 million of outstanding 9½% senior subordinated notes due May 2016.
The company also is soliciting consents to amend the notes to eliminate most of the restrictive covenants and events of default, according to a press release.
For each $1,000 principal amount, the total purchase price will be $1,054.25 for the 9¾% notes and $1,068.69 for the 9½% notes tendered by the consent payment deadline of 5 p.m. ET on Feb. 4.
The tender offer will end at 11:59 p.m. ET on Feb. 19.
The total amount includes a consent payment of $30 per $1,000 principal amount of notes tendered by the early deadline.
Those who tender after the early deadline will receive $1,024.25 per $1,000 principal amount of 9¾% notes and $1,038.69 per $1,000 principal amount of 9½% notes.
Holders also will receive accrued interest to but excluding the payment date.
The tender offer is conditioned on the company securing consents from holders of at least a majority of the outstanding notes and proceeds of at least $1 billion from an offering of new senior subordinated notes.
Denbury plans to sell $1 billion offering of senior subordinated notes due July 2023, as reported by Prospect News on Jan. 22.
Bank of America Merrill Lynch (888 292-0070 or collect 980 387-3907) is the dealer manager and solicitation agent. MacKenzie Partners, Inc. (800 322-2885 or collect 212 929-5500, or email tenderoffer@mackenziepartners.com) is the information agent.
Denbury Resources is a Plano, Texas-based oil focused exploration and production company.
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