Denbury Resources completed its May 2016 credit facility borrowing base redetermination, as well as an amendment to such credit facility.
The redetermination resulted in a revised borrowing base and commitment level of $1.05 billion, as compared to the company’s previous commitment level of $1.50 billion, now rendering the lender commitments and borrowing base under the credit facility identical. The company’s next scheduled borrowing base redetermination will occur on or about November 1, 2016.
According to a related 8-K filing, JPMorgan Chase Bank served as administrative agent.
Among other changes, the amendment to the credit facility:
- Permits the company to incur up to $1 billion of junior lien debt that may be issued in exchange for, or the proceeds of which may be used to purchase, refinance or replace the company’s existing senior subordinated notes or other unsecured indebtedness.
- Increases the mortgaged property collateral requirement from 85% to 90% of the PV-9 value of all proved reserves included as borrowing base properties.
As of March 31, 2016, the company had $310 million outstanding under its credit facility, an increase from $175 million outstanding as of December 31, 2015. The increase in borrowings under the credit facility is due in part to the company drawing approximately $55.5 million in Q1/16 to repurchase $152.3 million face amount of its senior subordinated notes in open-market transactions, resulting in a net reduction in debt of approximately $96.8 million.
Denbury is an independent oil and natural gas company with operations focused in two key operating areas: the Gulf Coast and Rocky Mountain regions.