ULTRA PETROLEUM CORP

26 Dec 2018capital raising announcement● NeutralMajor

The December 2018 bond swap closed on December 21, 2018: holders of about $505M of 2022 notes and $275M of 2025 notes of Ultra Resources received about $545M of new 9.00% cash / 2.00% PIK second-lien notes due July 12, 2024, plus 10,919,499 warrants (the October/December plans said 10,916,699; the filing gives the higher figure). The company received no cash. The warrants cost $0.01 each and only become exercisable after the shares average at least $2.50 for 30 trading days, with about 6% dilution if all are exercised. The remaining old-note covenants were stripped through a supplemental indenture. This resolves the open question of whether the exchange would close.

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21 Dec 2018capital raising announcement● NeutralMajor

On Dec 17, 2018, Ultra terminated the October exchange agreement and signed a replacement with holders of about $505M (72.1%) of the 2022 notes and $275M (55%) of the 2025 notes, to swap them for $545M of new second-lien 9.00% cash / 2.00% PIK notes due July 12, 2024 and 10,916,699 warrants. Terms are similar to October's, but the participating amounts are lower. The warrants cost $0.01 each to exercise, only become exercisable once the shares trade at $2.50 or more (30-day average) and would dilute shareholders by about 6% on 197,053,583 shares. Closing is expected before Dec 31, 2018; noteholders may also nominate one independent director.

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17 Oct 2018capital raising announcement● NeutralMajor

On Oct 17, 2018, Ultra agreed with holders of about $556.4M (79.5%) of 6.875% 2022 notes and $267.1M (53.4%) of 7.125% 2025 notes of Ultra Resources to swap them for new 9.00% cash / 2.00% PIK second-lien notes due July 2024 ($720 per $1,000 of 2022 notes, $660 per $1,000 of 2025 notes) plus warrants. The company says the warrants would dilute shareholders by about 6% if all are exercised; the deal needs bank-lender consents and an intercreditor agreement, and the press release says it cuts long-term debt by about $250M and pushes out about $560M of debt from 2022 to mid-2024. The release also reports closing a Utah asset sale, with proceeds used to pay down the revolver (this is the Uinta Basin position acquired in 2013; the filing text provided does not give a price). The company's headquarters had moved to Englewood, Colorado and shares are now NASDAQ-listed (UPL).

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