On January 22, 2013, Denbury Resources Inc. (the “Company”) entered into an Underwriting Agreement (the “Underwriting Agreement”) with Merrill Lynch, Pierce, Fenner & Smith Incorporated as representative for the several underwriters listed in Schedule 1 thereto (the “Underwriters”), in connection with the offer and sale by the Company of an aggregate principal amount of $1.2 billion of 4.625% Senior Subordinated Notes due 2023 (the “Notes”). The Underwriting Agreement contains customary representations, warranties, conditions to closing, obligations of the parties and termination provisions.
The Notes were offered and sold under a prospectus filed with the Securities and Exchange Commission pursuant to Rule 424(b)(5) of the Securities Act of 1933, as amended, in connection with the Company’s registration statement on Form S-3ASR which was filed with the Securities and Exchange Commission (Registration No. 333-186112) and automatically effective on January 22, 2013 (the “Registration Statement”).
The Notes were sold to the public at 100% of par, and will accrue interest from February 5, 2013. The Underwriters agreed to purchase the Notes for 98.5% of the principal amount thereof. Closing is expected to occur on February 5, 2013. The Company will pay interest on the Notes on January 15 and July 15 of each year, beginning July 15, 2013, and the Notes will mature on July 15, 2023. The Company may redeem the Notes on or after January 15, 2018 at the redemption prices described in the prospectus, and prior to that date the Company may redeem the Notes at 100% of the principal amount thereof plus a “make whole” premium and accrued unpaid interest. The foregoing description is qualified in its entirety by reference to the full text of the Underwriting Agreement, which is attached as Exhibit 1.1 to this Current Report on Form 8-K and incorporated in this Item 1.01 by reference.
On January 22, 2013, the Company commenced cash tender offers for $426.4 million aggregate principal amount of its 9¾% Senior Subordinated Notes due 2016 (the “9¾% Notes”) and $224.9 million aggregate principal amount of its 9½% Senior Subordinated Notes due 2016 (the “9½% Notes” and, collectively with the 9¾% Notes, the “Repurchase Notes”). Attached as Exhibit 99.1 to this Current Report on Form 8-K is the press release announcing commencement of these tender offers, which generally describes the terms and conditions of such tender offers, including the consent payment deadlines, amounts to be paid upon redemption and the Company’s obligations to accept for purchase and pay for validly tendered Repurchase Notes. The Company intends to use a portion of the net proceeds from the offering of the Notes to fund the repurchase of any and all of the Repurchase Notes, with the remaining proceeds from the Notes offering to be used by the Company for the repayment of current borrowings under its bank credit facility and then for general corporate purposes.
On January 22, 2013, the Company announced that it had priced the Notes described in this Current Report on Form 8-K, and this press release is attached hereto as Exhibit 99.2.