Denbury tenders, seeks consents for two series of 7½% senior notes

By Susanna Moon

Chicago, Feb. 3 - Denbury Resources Inc. said it began cash tender offers for its $300 million outstanding 7½% senior subordinated notes due 2015 and the $225 million outstanding 7½% senior subordinated notes due 2013 issued by Denbury Resources and Denbury Onshore, LLC.

The company also is soliciting consents to eliminate most of the restrictive covenants and events of default.

For each $1,000 principal amount, Denbury will pay $1,041.25 for the 2015 notes and $1,006.25 for the 2013 notes, which includes a $15.00 consent premium for notes tendered by the consent payment deadline of 5 p.m. ET on Feb. 16.

Holders who tender their notes after the consent date will receive the total payment less the consent fee.

Denbury also will pay accrued interest to, but not including, the payment date.

The tender offer will end at 11:59 p.m. ET on March 3.

The offers are conditioned on the receipt of consent from holders of at least a majority of the notes and securing proceeds of at least $350 million from an offering of new senior subordinated notes.

Bank of America Merrill Lynch (888 292-0070 or collect 980 388-9217) is the dealer manager and solicitation agent. MacKenzie Partners, Inc. (800 322-2885, collect at 212 929-5500 or e-mail tenderoffer@mackenziepartners.com) is the information agent.

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

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