Denbury’s $1.7 Billion Acquisition of Penn Virginia

Guggenheim Securities, LLC acted as lead financial advisor to Denbury. J.P. Morgan Securities LLC also provided financial advice to Denbury with respect to capital structure and financial aspects of the transaction and provided a financing commitment letter for a new $1.2 billion bank revolving credit facility and a $400 million senior secured second lien bridge loan. Jefferies LLC acted as financial advisor to Penn Virginia. Vinson & Elkins LLP acted as legal counsel to Denbury. Skadden, Arps, Slate, Meagher & Flom LLP and Gibson, Dunn & Crutcher LLP acted as legal counsel to Penn Virginia.

Denbury Resources Inc. (NYSE: DNR) and Penn Virginia Corporation (NASDAQ: PVAC) have entered into a definitive merger agreement pursuant to which Denbury will acquire Penn Virginia in a transaction valued at approximately $1.7 billion, including the assumption of debt.

The consideration to be paid to Penn Virginia shareholders will consist of 12.4 shares of Denbury common stock and $25.86 of cash for each share of Penn Virginia common stock.

Penn Virginia shareholders will be permitted to elect all cash, all stock or a mix of stock and cash, subject to proration, which will result in the aggregate issuance of approximately 191.6 million Denbury shares and payment of $400 million in cash.

The transaction was unanimously approved by the board of directors of each company, and Penn Virginia shareholders holding 15% of the outstanding shares signed a voting agreement to vote “for” the transaction.

Vinson & Elkins advised Denbury Resources Inc. with a team including Steve Gill (Picture) and Jeff Floyd, with assistance from associates Atma Kabad, Alex Robertson, David Bumgardner, Todd Hartis, Keyavash “Key” Hemyari and Madison Guidry. Also advising were partners Lina Dimachkieh, Guy Gribov, David D’Alessandro, Bryan Loocke, Sean Becker, Larry Nettles, Billy Vigdor and Steve Abramowitz.

Gibson Dunn advised Penn Virginia with a team including Hillary Holmes, Tull Florey (M&A), Justin Stolte (Energy), Shalla Prichard (Finance), James Chenoweth (Tax) and Sean Feller (Benefits).

Skadden advised Penn Virginia with M&A partners Leif King of Palo Alto and Frank Bayouth; tax partner Sally Thurston; executive compensation and benefits partner Erica Schohn; banking partner Kristine Dunn; capital markets partner Michelle Gasaway; environmental partner Don Frost; labor and employment partner Karen Corman; and real estate partner Meryl Chae.

 

Involved fees earner: Stephen Gill – Vinson & Elkins LLP; Jeffery Burton Floyd – Vinson & Elkins LLP; Atma Kabad – Vinson & Elkins LLP; Alex Robertson – Vinson & Elkins LLP; David Bumgardner – Vinson & Elkins LLP; Todd Hartis – Vinson & Elkins LLP; Keyavash Hemyari – Vinson & Elkins LLP; Lina Dimachkieh – Vinson & Elkins LLP; Guy Gribov – Vinson & Elkins LLP; David D’Alessandro – Vinson & Elkins LLP; Sean Becker – Vinson & Elkins LLP; Bryan Loocke – Vinson & Elkins LLP; Larry Nettles – Vinson & Elkins LLP; William Vigdor – Vinson & Elkins LLP; Steven Abramowitz – Vinson & Elkins LLP; Hillary Holmes – Gibson Dunn & Crutcher; Tull Florey – Gibson Dunn & Crutcher; Justin Stolte – Gibson Dunn & Crutcher; James Chenoweth – Gibson Dunn & Crutcher; Sean Feller – Gibson Dunn & Crutcher; Shalla Prichard – Gibson Dunn & Crutcher; Leif King – Skadden Arps Slate Meager & Flom; Frank Bayouth – Skadden Arps Slate Meager & Flom; Sally Thurston – Skadden Arps Slate Meager & Flom; Erica Schohn – Skadden Arps Slate Meager & Flom; Karen Corman – Skadden Arps Slate Meager & Flom; Kristine Dunn – Skadden Arps Slate Meager & Flom; Michelle Gasaway – Skadden Arps Slate Meager & Flom; Don Frost Jr. – Skadden Arps Slate Meager & Flom; Meryl Chae – Skadden Arps Slate Meager & Flom;

Law Firms: Vinson & Elkins LLP; Gibson Dunn & Crutcher; Skadden Arps Slate Meager & Flom;

Clients: Denbury Resources Inc.; Penn Virginia Corporation;