Denbury Resources expected to bring notes offering to help fund Penn Virginia acquisition

By Paul A. Harris

Portland, Ore., Nov. 6 – Denbury Resources Inc. is expected to refinance a $400 million senior secured second-lien bridge loan backing its acquisition of Penn Virginia Corp. with high-yield bonds, market sources say.

J.P. Morgan Securities LLC is expected to lead the deal, which could be near at hand, a bond investor said on Tuesday.

In mid-August Denbury priced a $450 million issue of 7½% second-lien bonds due February 2024.

Those bonds have been trading well, according to a sellside source, who spotted them at 97½ bid to yield 8% and change on Tuesday.

Debt financing for the Penn Virginia acquisition, valued at $1.7 billion, also includes a $1.2 billion senior secured revolving credit facility.

It is also expected to include equity issued to Penn Virginia shareholders and cash on hand.

The acquisition is expected to close in the first quarter of 2019.

Denbury is a Plano, Texas, oil and natural gas company.

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