Each one in plain English, with the numbers worked through for a shareholder.
14 Aug 2018debt financing● NeutralMajor
Denbury amended its bank credit agreement (Sixth Amendment, 13 Aug 2018) to raise the cap on junior-lien debt from $1.2 billion to $1.65 billion, with $1.07 billion currently outstanding, and launched a $400 million offering of new second lien notes due 2024. Once the offering closes, the bank facility's maturity moves to December 2021 (earlier, Feb-Aug 2021, if the 2021 second lien or 6⅜% subordinated notes are not repaid or refinanced), at least $350 million of bank borrowings must be repaid, the borrowing base falls from $1.05 billion to $615 million, and a new total debt/EBITDAX limit of 5.25x applies through 2020 (4.5x after). The company says proceeds will repay substantially all bank borrowings ($410 million at 31 July 2018). This continues the debt reshuffling since the Dec 2017/Jan 2018 exchanges.
SailingStone Capital Partners LLC, SailingStone Holdings LLC, MacKenzie B. Davis, Kenneth L. Settles Jr, Victory Global Natural Resources Fund reported a DENBURY INC shareholding of 29,193,261 shares (7.30% of votes) in a periodic institutional filing.
11 Jan 2018capital raising announcement● NeutralMajor
A further exchange offer closed on 9 January 2018: about $174.3 million of old 2021, 2022 and 2023 subordinated notes were swapped for about $133.5 million of new notes ($74.1 million of 9¼% second lien notes and $59.4 million of 5% convertibles due 2023). The convertibles could become up to 16.7 million shares. Combined with the December exchanges, debt principal falls by about $184.4 million, rising to about $269 million if the 3½% convertibles convert and about $329 million if the new 5% convertibles also convert. Outstanding subordinated notes are now $203.5 million (2021), $314.6 million (2022) and $308.0 million (2023).
12 Dec 2017capital raising announcement● NeutralMajor
The November exchange closed on 6 December 2017: about $610 million of old subordinated notes were swapped for about $467 million of new notes (~$382 million 9¼% second lien notes due March 2022 and ~$85 million 3½% convertibles due March 2024). The 2022 subordinated notes fall to $409 million and the 2023 notes to $377 million. The new second lien notes share security equally with the 9% 2021 second lien notes, and both new indentures restrict dividends and share buybacks. The convertibles can turn into 38-39 million shares, so existing shareholders may be diluted.
30 Nov 2017capital raising announcement● NeutralMajor
Denbury announced agreements to swap about $610 million of its 5½% 2022 and 4⅝% 2023 subordinated notes for about $466 million of new notes: ~$382 million of 9¼% second lien notes due 2022 and ~$85 million of 3½% convertible notes due 2024. This continues the 2016 pattern of exchanging subordinated debt for secured debt. The convertibles could become 38-39 million new shares (automatic conversion if the stock is at or above $2.65 for 10 of 15 trading days), which would dilute existing holders. Management says debt falls $144 million at closing, or about $228 million if the convertibles fully convert. Closing was expected around 6 December 2017.
