Tender OffersDenbury announced its intention to accept for purchase all of Encore’s senior subordinated notes tendered by holders pursuant to cash tender offers and related consent solicitations commenced on February 8, 2010 for $600 million aggregate principal amount of three series of outstanding Encore senior subordinated notes. As of 5:00 p.m. Eastern Time on March 9, 2010, tenders and consents had been received with respect to (i) $108,216,000 aggregate principal amount, or 72%, of Encore’s outstanding 6.25% Senior Subordinated Notes due 2014, (ii) $268,801,000 aggregate principal amount, or 90%, of Encore’s outstanding 6.0% Senior Subordinated Notes due 2015, and (iii) $123,515,000 aggregate principal amount, or 82%, of Encore’s outstanding 7.25% Senior Subordinated Notes due 2017. Denbury announced that the original expiration of the cash tender offers and consent solicitations set for 5:00 p.m., Eastern Time on March 9, 2010 for notes of these series has been extended until 10:00 a.m., Eastern Time on March 10, 2010. The purchase of tendered notes will be financed with a portion of the net proceeds from Denbury’s $1.0 billion of 8¼% Senior Subordinated Notes Due 2020 sold early last month. Denbury will assume Encore’s position as obligor on the remainder of all Encore senior subordinated notes which remain outstanding, and, in accordance with the applicable indentures, will, within 30 days after consummation of the merger, notify the holders thereof of their right to resell those notes to Denbury at 101% of the face amount thereof. If the principal amount of the Encore notes purchased pursuant to the tender offers and the subsequent rights of holders to sell the remaining notes to Denbury totals less than $600 million, Denbury will redeem that portion of its 8¼% Senior Subordinated Notes Due 2020 in a principal amount equal to the difference between $600 million and the aggregate principal amount of Encore notes so purchased, at 100% of face value of its 8¼% notes, plus interest accrued and unpaid to but not including the date of redemption.
In the merger, J.P. Morgan Securities Inc. acted as exclusive financial advisor to Denbury and Barclays Capital Inc. acted as exclusive financial advisor to Encore. Baker & Hostetler LLP acted as counsel to Denbury, and Baker Botts L.L.P. and Latham & Watkins LLP as counsel to Encore.Cautionary Note on Forward-Looking Statements Certain statements in this release may constitute "forward-looking statements" within the meaning of Federal securities laws. The events and circumstances referred to in forward-looking statements are subject to numerous risks and uncertainties that are detailed in Denbury's filings with the Securities and Exchange Commission, including its most recent reports on Forms 10-K and 8-K. Investors and securities holders are urged to consider closely the disclosure in our Annual Report on Form 10-K, available free of charge on our internet site ( www.denbury.com). You can also obtain this form from the SEC on the SEC’s internet site ( www.sec.gov) or by calling 1-800-SEC-0330. These risks and uncertainties are incorporated by this reference as though fully set forth herein and these events and circumstances may be influenced by factors that could cause actual outcomes and results to be materially different from those projected. All written and oral forward-looking statements attributable to Denbury or persons acting on its behalf are expressly qualified in their entirety by such factors.