Denbury gets amended $3.5 billion five-year revolver via JPMorgan

By Susanna Moon

Chicago, Dec. 10 – Denbury Resources Inc. said it obtained an amended $3.5 billion five-year revolving credit facility.

The revolver amends the company’s facility that was set to mature in May 2016.

The facility has an initial borrowing base of $3 billion, and the company elected to maintain the aggregate lender commitments at $1.6 billion to be consistent with its previous facility, according to a company press release.

The annual redetermination of the borrowing base will occur around May 1 of each year and permits the company to increase the aggregate lender commitments up to the borrowing base amount with approval and incremental commitments from the existing lenders or new lenders, the press release noted.

The facility also reduces borrowing costs by 25 basis points on the drawn spread, provides for a lower interest rate on the undrawn spread and grants Denbury the option to release all collateral upon the receipt of a single investment-grade rating.

The syndicate of 24 financial institutions includes JPMorgan Chase Bank, NA as administrative agent and Bank of America, NA and Wells Fargo Bank, NA as co-syndication agents.

Denbury Resources is a Plano, Texas-based oil-focused exploration and production company.

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