Published on 2/3/2011 in the Prospect News High Yield Daily.
New Issue: Denbury Resources sells upsized $400 million 10.5-year notes at par to yield 6 3/8%
By Paul A. Harris
Portland, Ore., Feb. 3 - Denbury Resources Inc. priced an upsized $400 million issue of 10.5-year senior subordinated notes (B1/BB-/) at par to yield 6 3/8% on Thursday, according to an informed source.
The yield printed at the tight end of the 6½% area price talk.
Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Credit Suisse Securities, UBS Investment Bank, RBC Capital Markets and Wells Fargo Securities were the joint bookrunners for the quick-to-market issue, which was upsized from $350 million.
The Plano, Texas-based oil and natural gas company plans to use the proceeds plus cash on hand to fund the tender for its 7½% senior subordinated notes due 2013 and its 7½% senior subordinated notes due 2015.
| Issuer: | Denbury Resources Inc.
|
| Amount: | $400 million, increased from $350 million
|
| Maturity: | Aug. 15, 2021
|
| Securities: | Senior subordinated notes
|
| Bookrunners: | Bank of America Merrill Lynch, J.P. Morgan Securities LLC, Credit Suisse Securities, UBS Investment Bank, RBC Capital Markets, Wells Fargo Securities
|
| Co-managers: | BNP Paribas, Scotia Capital, Credit Agricole CIB, Lloyds TSB, BBVA Securities, Capital One Southcoast, CIBC World Markets, Comerica Investments, ING, KeyBanc Capital Markets, Mitsubishi UFJ Securities, SMBC Nikko Capital Markets, SunTrust Robinson Humphrey Inc., U.S. Bancorp Investments
|
| Coupon: | 6 3/8%
|
| Price: | Par
|
| Yield: | 6 3/8%
|
| Spread: | 285 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps until Aug. 15, 2016, then callable at 103.188, 102.125, 101.062, par on and after Aug. 15, 2019
|
| Equity clawback | 35% at 106.375 until Aug. 15, 2014
|
| Change-of-control put: | 101%
|
| Trade date: | Feb. 3
|
| Settlement date: | Feb. 17
|
| Ratings: | Moody's: B1
|
| Standard & Poor's: BB-
|
| Distribution: | SEC registered
|
| Price talk: | 6½% area
|
| Marketing: | Quick to market
|
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