DENBURY RESOURCES INC. (NYSE:DNR) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01 Entry into a Material Definitive Agreement
a Fourth Amendment (the Amendment) to its December 9, 2014
Amended and Restated Credit Agreement among the Company, JPMorgan
Chase Bank, N.A., as administrative agent, and the financial
institutions party thereto (the Credit Agreement) in connection
with its regularly scheduled May 2017 borrowing base
redetermination (the Redetermination).
covenants through the remaining term of the Credit Agreement,
which matures December 9, 2019, in order to provide more
flexibility in managing the credit extended by the Companys
lenders. The Amendment included the following:
|
Eliminating the consolidated total net debt to consolidated
EBITDAX maintenance covenants that were scheduled to be reinstated starting in 2018 through the remaining term of the facility; |
|
Extending the existing consolidated senior secured debt to
consolidated EBITDAX maintenance covenant through the remaining term of the facility, with such ratio not to exceed 3.0 to 1.0 through the first quarter of 2018, and thereafter not to exceed 2.5 to 1.0. Currently, only debt under the Credit Agreement is considered consolidated senior secured debt for purposes of this ratio; |
|
Extending the existing minimum permitted ratio of
consolidated EBITDAX to consolidated interest charges of 1.25 to 1.0 through the remaining term of the facility, as it previously would have expired after the fourth quarter of 2017; and |
|
Increasing the applicable margin for ABR Loans and LIBOR
Loans by 50 basis points such that the margin for ABR Loans now ranges from 1.5% to 2.5% per annum and the margin for LIBOR Loans now ranges from 2.5% to 3.5% per annum. |
amended, and so remains in place. Also, incurrence of additional
debt in connection with certain events remains subject to a Total
Leverage Test unless the consolidated total net debt to
consolidated EBITDAX ratio is reduced on a pro forma basis by the
event. The Redetermination resulted in a reaffirmation of the
borrowing base and commitment level of $1.05 billion. A total of
$355 million of borrowings and $72 million of letters of credit
were outstanding under the Credit Agreement as of March 31, 2017.
The Companys next scheduled borrowing base redetermination will
occur on or about November 1, 2017.
respective meanings given to such terms in the Amendment or the
Credit Agreement, as applicable. The foregoing description of the
Amendment does not purport to be complete and is qualified in its
entirety by reference to the full text of the Amendment, which is
filed as Exhibit 10.1 hereto and incorporated by reference in
this Current Report on Form 8-K.
2017>first quarter>financial and operating results. A copy
of the press release is attached as Exhibit 99.1 to this Current
Report on Form 8-K.
hereto shall not be deemed filed for purposes of the Securities
Exchange Act of 1934, as amended (the 1934 Act), and shall not be
deemed incorporated by reference in any filing with the
Securities and Exchange Commission (unless otherwise specifically
provided therein), whether or not filed under the Securities Act
of 1933, as amended, or the 1934 Act, regardless of any general
incorporation language in any such document.
Obligation under an Off-Balance Sheet Arrangement of a Registrant
above is incorporated by reference in this Item 2.03.
|
(d)
|
Exhibits.
|
provisions of Item 601 of Regulation S-K:
|
Exhibit Number
|
Description
|
|
|
10.1*
|
Fourth Amendment to Amended and Restated Credit
Agreement, dated as of May 3, 2017, by and among Denbury Resources Inc., as Borrower, JPMorgan Chase Bank, N.A., as Administrative Agent, and the financial institutions party thereto. |
|
|
99.1*
|
Denbury Press Release, dated May 4, 2017.
|
|
*
|
Included herewith.
|
About DENBURY RESOURCES INC. (NYSE:DNR)
Denbury Resources Inc. is an independent oil and natural gas company. The Company’s operations are focused on two operating areas: the Gulf Coast and Rocky Mountain regions. Its properties with proved and producing reserves in the Gulf Coast region are situated in Mississippi, Texas, Louisiana and Alabama, and in the Rocky Mountain region are situated in Montana, North Dakota and Wyoming. It has estimated proved oil and natural gas reserves of over 288.6 million barrels of oil equivalent (MMBOE). Its primary Gulf Coast carbon dioxide (CO2) source is Jackson Dome, which is located near Jackson, Mississippi. Its mature group of properties includes the initial CO2 field, Little Creek, as well as various other fields, including Brookhaven, Cranfield, Eucutta, Lockhart Crossing, Mallalieu, Martinville, McComb and Soso fields. Its LaBarge Field is located in southwestern Wyoming. It holds interest in LaBarge Field, which consists of over 1.2 trillion cubic feet of proved CO2 reserves. DENBURY RESOURCES INC. (NYSE:DNR) Recent Trading Information
DENBURY RESOURCES INC. (NYSE:DNR) closed its last trading session 00.00 at 2.15 with 4,919,397 shares trading hands.