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Completes Offering of $1.25 Billion of 5 1/2% Senior Subordinated Notes due 2022 Announces Redemption of Remaining 8 1/4% Senior Subordinated Notes Due 2020
PLANO, Texas, April 30, 2014 (GLOBE NEWSWIRE) -- Denbury Resources Inc. (NYSE:DNR) ("Denbury" or the "Company") announced today that it exercised its early purchase option and has accepted for purchase the 8 1/4% Senior Subordinated Notes due 2020 of the Company (the "8 1/4% Notes") tendered and not withdrawn prior to 5:00 p.m., New York City time yesterday, April 29, 2014 (the "Consent Payment Deadline"), pursuant to Denbury's previously announced tender offer and consent solicitation. As of the Consent Payment Deadline, approximately $815 million principal amount of the 8 1/4% Notes, or approximately 82% of the outstanding 8 1/4% Notes had been validly tendered and not withdrawn. Payment for the 8 1/4% Notes purchased was made today.
Denbury further announced that today it has closed its sale of $1.25 billion principal amount of its 5 1/2% Senior Subordinated Notes due 2022 (the "5 1/2% Notes"), the proceeds of which are to be used to fund the costs to repurchase the 8 1/4% Notes, and to pay related fees and expenses. The remaining net proceeds from this sale of the 5 1/2% Notes will be used to reduce borrowings under the Company's bank credit facility and for general corporate purposes.
Based on the amount of 8 1/4% Notes tendered and accepted for purchase, the Company received a sufficient number of consents to adopt the proposed amendments to the indenture governing the 8 1/4% Notes. These amendments were adopted on April 30, 2014 pursuant to a supplemental indenture to the indenture governing the 8 1/4% Notes which eliminated most of the restrictive covenants and certain events of default in that indenture.
The tender offer is being made pursuant to the terms and conditions of the Offer to Purchase and Consent Solicitation Statement, dated as of April 16, 2014, and the related Letter of Transmittal and Consent (collectively, the "Offer Documents"). The tender offer will expire at 11:59 p.m., New York City time, on May 13, 2014, unless extended by the Company.