Ultra Petroleum Corp. said Dec. 26 that it closed on an exchange agreement to reduce long-term debt by approximately $235 million.
As outlined under the transaction, which closed Dec. 21, the company's consolidated net leverage ratio is reduced to 3.5 times, from 3.9 times. In addition, the new notes will extend the maturity of the exchanged 2022 notes to July 2024.
The company will also be able to exchange approximately $55 million of the remaining 2022 notes within one year on the same terms or terms that are more favorable.
Ultra is an independent exploration and production company focused on the Green River Basin in Wyoming. It emerged from Chapter 11 restructuring in April 2017.
The company closed in December 2017 on a deal to divest its nonoperated assets in the Marcellus Shale to Alta Marcellus Development LLC for $115 million.
The assets sold included net production of 30 MMcf/d and associated gathering infrastructure, with proceeds expected to be used to help Ultra reduce leverage and improve liquidity.