Ultra Petroleum exchanges $44.6 million 6 7/8% notes year to date

By Angela McDaniels

Tacoma, Wash., Feb. 19 – Ultra Petroleum Corp. exchanged more of Ultra Resources, Inc.’s 6 7/8% senior notes due 2022 for new 9% cash/2% PIK senior secured second-lien notes due July 12, 2024, according to a company news release.

This year to date, the company has closed on agreements to exchange $44.6 million principal amount of the 6 7/8% notes for about $27 million of second-lien notes, bringing the total reductions to debt from these exchanges to $252.5 million.

The company has the ability to further exchange about $10.4 million of the remaining 6 7/8% notes under terms more favorable to the company than the debt exchange completed in December. The additional exchanges must be completed within one year of the December exchange.

The indenture also allows the exchange of remaining 6 7/8% notes and 7 1/8% senior notes due 2025 issued by Ultra Resources for up to $240 million of new third-lien debt.

Prior exchanges

As previously reported, the company exchanged $505 million principal amount, or 72.1%, of the 6 7/8% notes and $275 million principal amount, or 55%, of the 7 1/8% notes for $545 million of the second-lien notes and 10,916,699 warrants in December.

For each $1,000 principal amount of 6 7/8% notes, holders received $720 principal amount of new notes issued and 14 warrants.

For each $1,000 aggregate principal amount of 7 1/8% notes, holders received $660 principal amount of new notes and 14 warrants.

In January, the company agreed to exchange about $24.1 million of 6 7/8% notes for about $14.5 million of second-lien notes.

Holders received $600 principal amount of second-lien notes for each $1,000 principal amount of 6 7/8% notes. No stock warrants were included in the January exchange.

Ultra Petroleum is a natural gas and oil exploration, development and production company based in Englewood, Colo.

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