Denbury Resources Announces Sale of $75,000,000 of Senior Subordinated Notes.Business Editors DALLAS-(BUSINESS WIRE)--Aug. 9, 2001--Denbury Resources Inc. (NYSE NYSE See: New York Stock Exchange :DNR See dynamic noise reduction and domain name resolver. )(TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :DNR)("Denbury" or the "Company") announced today that it has sold $75 million face amount of Series B Senior Subordinated Notes due 2008 in a private Rule 144A Rule 144A A Securities & Exchange Commission rule modifying a two-year holding period requirement on privately placed securities to permit qualified institutional buyers to trade these positions among themselves. offering. Although the Company announced the termination of this offering one week ago, due to improved market conditions yesterday, the Company decided to proceed with the offering. The notes will be issued under a separate indenture but on terms substantially identical to the Company's existing 9% Senior Subordinated Notes due 2008. The Company expects to close the sale of the notes on August 15, 2001. The notes are being sold at 91.371% of their face amount. Denbury plans to use the estimated net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). of $65.9 million from the offering to repay a majority of the long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. borrowed under the Company's bank credit facility in connection with the recent acquisition of Matrix Oil & Gas, Inc. The Matrix acquisition closed on July 10, 2001. The notes have not been registered under the Securities Act of 1933 or applicable state securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state laws. This announcement shall not constitute an offer to sell or the solicitation of an offer to buy the notes. This press release, other than historical financial information, contains forward-looking statements that involve risks and uncertainties, including whether the sale of the notes will be closed. |
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