What does the announcement that Denbury has entered into note exchange agreements mean for Denbury employees?
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read the recent seeking alpha article. all makes sense.
Just to clarify, you don’t raise new money in a notes exchange. It reduces the overall debt principal by $140 million by getting bond holders to ‘turn in’ their existing notes for new notes that are a higher priority and have the option to convert to stock to get upside. Just think of it as refinancing a car/house, only your overall balance owed went down in the process.
Sounds like they are waiting for the stock to go up a bit more before diluting it.
Think it is the extension of the change in long term employee incentives w/ no more stock purchases. Investors pay in and get notes that then eventually produce more stock? Way to raise money. Heard they did in fact raise a bunch of money on these exchange agreements. A way to satisfy our bank notes in the coming years.
Heck, I'd be happy to know what note exchange agreements are much less how they effect us.