Denbury Resources has filed a registration statement with the Securities and Exchange Commission relating to the public offering of $1 billion of Senior Subordinated Notes due 2020. Denbury expects to complete the offering by the early part of next week.
The net proceeds from the offering will be placed in escrow pending the closing of the previously announced merger of Encore Acquisition Company with and into Denbury. Upon the closing of the merger, $400 million of the escrowed proceeds will be released to us to finance a portion of the merger consideration. In addition, on or about the date of the closing of the notes offering, we intend to offer to purchase three series of Encore’s outstanding senior subordinated notes (other than Encore’s 9.5% Senior Subordinated Notes due 2016). The remaining $600 million of escrowed proceeds will be used to fund repurchases pursuant to these offers or any change of control offers to be made upon consummation of the merger.
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