Ultra Petroleum cancels exchange offer for 7 1/8% notes due 2025

By Marisa Wong

Los Angeles, July 12 – Ultra Petroleum Corp. said it has terminated its offer to exchange the $225 million of outstanding 7 1/8% senior notes due 2025 issued by subsidiary Ultra Resources, Inc. for up to $90 million of its new 9% cash/2½% PIK senior secured third-lien notes due 2024.

All notes tendered under the offer will be returned to their respective holders, no 2025 notes will be accepted for exchange, and no third-lien notes will be issued, according to a Thursday press release.

In a previous announcement, Ultra Petroleum had extended the early participation date and withdrawal deadline of the offer to 5 p.m. ET on July 12 from 5 p.m. ET on June 21. Before that, the deadline had been extended from 5 p.m. ET on June 14, from 5 p.m. ET on June 7, from 5 p.m. ET on May 31 and from 5 p.m. ET on May 23.

Ultra Petroleum had also extended the expiration of the offer to 5 p.m. ET on July 26. The offer had previously been extended to 5 p.m. ET on July 10 from 5 p.m. ET on June 10.

As of 5 p.m. ET on June 21, holders had tendered $7.6 million, or 3.4%, of the outstanding 2025 notes.

As announced on May 9, the exchange consideration for each $1,000 principal amount of 2025 notes was $475 principal amount of third-lien notes, not including the early tender premium. Holders who tendered for exchange and did not withdraw their 2025 notes prior to the early participation date were to also receive an early tender premium equal to $50 principal amount of third-lien notes per $1,000 principal amount of 2025 notes accepted for exchange.

Holders would have also received accrued interest from April 15 up to the settlement date of the exchange offer.

The information and exchange agent is D.F. King & Co., Inc. (800 967 5074 toll-free or 212 269-5550 for banks and brokers; www.dfking.com/UPL; email upl@dfking.com).

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

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