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Subsequent Events
12 Months Ended
Dec. 31, 2012
Subsequent Events [Abstract]  
Subsequent Events
Note 13. Subsequent Events

Pending CCA Acquisition

In January 2013, we entered into an agreement to acquire producing assets in the Cedar Creek Anticline (“CCA”) of Montana and North Dakota from a wholly-owned subsidiary of ConocoPhillips for $1.05 billion in cash, before standard closing adjustments primarily for revenues and costs of the properties to be purchased from the January 1, 2013 effective date to the closing date. We plan to fund the acquisition out of a portion of the cash proceeds from the Bakken Exchange Transaction in order to qualify the acquisition for like-kind-exchange treatment under federal income tax rules. We expect the acquisition to close near the end of the first quarter of 2013.

New Senior Subordinated Notes

On February 5, 2013, we issued the 2023 Notes, which carry a coupon rate of 4.625%, and were sold at par. The net proceeds of $1.18 billion have been used to repurchase a portion of, or are intended to be used to redeem the remainder of, our outstanding 9½% Notes and 9¾% Notes and to reduce borrowings under our credit facility.

The 2023 Notes mature on July 15, 2023, and interest is payable on January 15 and July 15 of each year, commencing July 15, 2013. We may redeem the 2023 Notes in whole or in part at our option beginning January 15, 2018, at the following redemption prices: 102.313% on or after January 15, 2018; 101.542% on or after January 15, 2019; 100.771% on or after January 15, 2020; and 100% on or after January 15, 2021. Prior to July 15, 2016, we may at our option redeem up to an aggregate of 35% of the principal amount of the 2023 Notes at a price of 104.625% with the proceeds of certain equity offerings. In addition, at any time prior to July 15, 2018, we may redeem 100% of the principal amount of the 2023 Notes at a price equal to 100% of the principal amounts plus a “make whole” premium and accrued and unpaid interest. The indenture contains certain restrictions on our ability to: (1) incur additional debt; (2) pay dividends on our common stock or redeem, repurchase or retire such capital stock or subordinated debt unless certain leverage ratios are met; (3) make investments; (4) create liens on our assets; (5) create restrictions on the ability of our restricted subsidiaries to pay dividends or make other payments to the Company; (6) engage in transactions with our affiliates; (7) transfer or sell assets; and (8) consolidate, merge or transfer all or substantially all of our assets and the assets of our subsidiaries. All of our significant subsidiaries fully and unconditionally guaranteed this debt.

Tender Offers

On January 22, 2013, we commenced cash tender offers to purchase $426.4 million principal amount of our 9¾% Notes and $224.9 million principal amount of our 9½% Notes. During February 2013, we accepted for purchase $191.7 million principal amount of the outstanding 9¾% Notes and $186.7 million principal amount of the outstanding 9½% Notes. We received sufficient consents in the solicitation to amend the indenture governing the 9½% Notes by entering into a supplemental indenture, which eliminated most of the restrictive covenants and certain events of default. The purchases under these tender offers were funded by the proceeds from the sale of our 2023 Notes. The tender offers expired on February 19, 2013. On February 5, 2013, we issued a notice of redemption for all remaining outstanding 9¾% Notes at 104.875% of par with a redemption date of March 7, 2013 and intend to call the 9½% Notes for redemption on or about May 1, 2013.

Stock Repurchase Program

Between January 1, 2013 and February 21, 2013, the Company repurchased an additional 3.5 million shares of Denbury common stock under the share repurchase program for $59.1 million, or $16.73 per share. From the time the share repurchase program commenced in October 2011 through February 21, 2013, we have repurchased a total of $521.0 million of common stock under the program, and are authorized to spend an additional $250.2 million under this repurchase program. See Note 7, Stockholders' Equity, for additional information.

Equity Award Grant

In January 2013, we granted equity incentive awards to our employees under the 2004 Plan.  The grant included 1,545,077 shares of restricted stock valued at $16.77 per share (the closing price of Denbury’s common stock on January 4, 2013) and 605,802 SARs with an exercise price of $16.77 and a weighted average grant date fair value ranging between $5.42 and $8.72 per unit. The awards generally vest 33% per year over a three-year period.