Denbury Resources seeks court approval of $615 million DIP facility

By Caroline Salls

Pittsburgh, July 31 – Denbury Resources Inc. requested court approval to obtain $615 million in debtor-in-possession financing from its existing lenders, according to a motion filed Friday with the U.S. Bankruptcy Court for the Southern District of Texas.

JPMorgan Chase Bank, NA is the administrative and collateral agent.

The DIP financing will mature on July 30, 2021.

Interest will accrue at the Base rate plus 200 basis points to 300 bps or Libor plus 300 bps to 400 bps, depending on the borrowing base utilization percentage.

The company is seeking interim access to $185 million of rolled-up funds and $25 million in new-money commitments.

Upon emergence from Chapter 11, the DIP facility will roll into a revolving exit credit facility with an initial availability of $615 million.

According to the Chapter 11 petition filed late Wednesday, Denbury had $4,607,091,000 in total assets and $3,117,646,000 of total debt as of March 31.

The company’s largest unsecured creditors are Wilmington Trust, NA of Dallas, with a $225.66 million 6.375% convertible senior notes claim, a $135.96 million 4 5/8% senior subordinated notes claim, a $58.43 million 5˝% senior subordinated notes claim and a $51.3 million 6 3/8% senior subordinated notes claim, and FDL Operating LLC of Irving, Tex., with a $1.58 million trade claim.

Denbury is a Plano, Tex., oil and natural gas company. The Chapter 11 case number is 20-33801.

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