Denbury enters additional senior subordinated notes exchange agreements

Denbury Resources Inc. (NYSE:DNR) has entered into privately negotiated exchange agreements with holders of approximately $135.3 million in aggregate principal amount of its outstanding senior subordinated notes (the old notes) to exchange that principal amount of old notes for approximately $83.8 million in aggregate principal amount of the company’s 9% senior secured second lien notes due 2021 (the new notes) and approximately 3.8 million shares of the company’s common stock (the shares).

Including previously announced exchanges pursuant to exchange agreements entered into on May 3 and May 4, 2016, and the additional exchanges described above, the company will have issued approximately $615.1 million in aggregate principal amount of new notes and approximately 40.7 million shares in exchange for approximately $175.1 million in aggregate principal amount of its 6⅜% senior subordinated notes due 2021, approximately $411.1 million in aggregate principal amount of its 5½% senior subordinated notes due 2022 and approximately $471.8 million in aggregate principal amount of its 4⅝% senior subordinated notes due 2023.

The new notes are senior in right of payment to old notes which remain outstanding and to any other current or future subordinated indebtedness of the company. The new notes mature on May 15, 2021 and bear interest at a rate of 9% per annum payable in cash. The new notes are fully and unconditionally guaranteed, jointly and severally, by subsidiaries of the company representing substantially all of the company’s assets, operations and income and will be secured by second-priority liens on substantially all of the assets that secure the company’s senior secured bank credit facility.

The company expects that the exchanges will close on May 18, 2016, subject to customary closing conditions.

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