Denbury Resources $1.2B high-yield bonds price at par to yield 4.625%; terms

Denbury Resources late yesterday completed an offering of subordinated notes via bookrunners Bank of America, J.P. Morgan, Credit Suisse, Wells Fargo, RBC, and Credit Agricole, according to sources. Demand for a the deal led to a $200 million upsizing as terms were finalized at the tight end of talk. Proceeds will be used to fund the tender offer for the 9.75% and 9.5% notes due 2016, to repay borrowings under the company’s credit facility, and for general corporate purposes, according to SEC filings. Denbury is an independent oil and natural-gas company with properties in the Gulf Coast region located in Mississippi, Texas, Louisiana, and Alabama as well as in the Rocky Mountain region. Terms:


Issuer Denbury Resources
Ratings BB/B1
Amount $1.2 billion
Issue subordinated notes (SEC Reg.)
Coupon 4.625%
Price 100
Yield 4.625%
Spread T+279
FRN eq. L+274
Maturity July 15, 2023
Call nc5
Trade Jan. 22, 2013
Settle Feb. 5, 2013 (T+10)
Joint Bookrunners BAML/JPM/CS/WF/RBC/CA
Px talk 4.625-4.875%
Notes w/ three-year equity clawback for 35% @ 104.625; carries T+50 make-whole call; w/ change-of-control put @ 101; upsized by $200 million.



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