By Wendy Van Sickle
Columbus, Ohio, June 24 – Denbury Resources Inc. issued $528 million of new 7¾% senior secured second-lien notes due 2024 and $245.5 million of new 6.375% convertible senior notes due 2024 on June 19 to settle the early tenders in its exchange offer and some private exchanges of three series of notes, according to an 8-K filing with the Securities and Exchange Commission.
The company also paid $120 million in cash as part of the early settlement and private exchange payment.
As previously announced, by the early deadline of its exchange offers to eligible holders of its 6.375% senior subordinated notes due 2021, 5½% senior subordinated notes due 2022, and 7½% senior secured second-lien notes due 2024, participants had tendered about $107.5 million principal amount of 2021 notes, $173.3 million principal amount of 2022 notes and $257.3 million principal amount of old second-lien notes.
The dearly deadline was 5 p.m. ET on June 14.
Under the tender launched June 3, the company accepted all $107.5 million of the validly tendered 2021 notes and about $126.8 million of the 2022 notes, at a proration factor of about 73.1% for the 2022 notes, in exchange for about $71.5 million in cash and $66 million of new 7¾% second-lien notes due 2024 and $96.5 million aggregate principal amount of new 6.375% convertible senior notes due 2024.
In addition, all $257.3 million validly tendered second-lien notes were exchanged for about $257.3 million of new second-lien notes.
Combining the early participation results with the private exchange agreements with institutional investors previously announced, the company accepted exchanges of a total of $152.2 million of 2021 notes, $219.9 million of 2022 notes, $96.3 million of 4 5/8% senior subordinated notes due 2023 and $425.4 million of old second-lien notes in exchange for a total of $120 million of cash, $528 million of new second-lien notes and $245.5 million of new convertible senior notes.
The initial settlement date is expected to be June 19.
The exchange offers will expire at 11:59 p.m. ET on June 28, but Denbury does not expect to accept for exchange any old subordinated notes that are validly tendered after the early participation time.
The final settlement date, if necessary, is expected to occur on or about July 2.
D.F. King & Co., Inc. (800 399-1581 toll free, 212 269-5550 banks and brokers or denbury@dfking.com) is the exchange agent and information agent.
Denbury is a Plano, Tex., oil and natural gas company.
| Issuer: | Denbury Resources Inc.
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| Settlement date: | June 19
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| Second-lien notes
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| Issue: | Senior secured second-lien notes
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| Amount: | $528 million
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| Coupon: | 7¾%
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| Maturity: | Feb. 15, 2024
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| Call: | Callable at 103.875 from Aug. 15, 2020 until Aug. 15, 2021, stepping down to 101.938 until Aug. 15, 2022 and par thereafter
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| Convertibles
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| Issue: | Convertible senior notes
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| Amount: | $245.5 million
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| Coupon: | 6.375%
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| Maturity: | 2024
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| Conversion rate: | 370
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| Put option: | At 101 following a change of control
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| Stock symbol: | NYSE: DNR
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| Stock price: | $1.21 at market close June 24
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| Market capitalization: | $558.08 million
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