The following is an excerpt from the 2016 10-K: During 2016, we completed a series of privately negotiated debt exchanges and open market debt repurchases, contributing to a net reduction of our debt principal balance of $530.4 million between December 31, 2015 and 2016. In May 2016, we entered into privately negotiated agreements to exchange $175.1 million principal amount of our new 9% Senior Secured Second Lien Notes due 2021 (2021 Notes), $411.0 million principal amount of our 5% Senior Subordinated Notes due 2022 (2022 Notes), and $471.7 million principal amount of our Senior Subordinated Notes due 2023 (2023 Notes) for $614.9 million principal amount of new 2021 Senior Secured Notes plus 40.7 million shares of Denbury common stock, resulting in a net reduction from these exchanges of $442.9 million in our debt principal.

a. Describe the transaction in accounting terms.

b. Reconstruct the journal entry as you can, assuming cash fees of $18,700.

c. How much interest expense will Denbury recognize on the 9% notes in future years?