Legacy Reserves LP (NASDAQ: LGCY) entered into additional transactions to reduce its total indebtedness and increase its financial flexibility, the company said on Jan. 5.

In December, Legacy entered into a definitive agreement with certain funds managed by Fir Tree Partners to acquire its entire holdings in Legacy’s $550 million 6.625% senior notes due 2021.

Legacy purchased $187 million of the 6.625% notes for a price of approximately $131 million. Pro forma for this repurchase, Legacy owns $304 million of the 6.625% notes representing 55% of the total.

Legacy also owns $67 million of the 8% senior notes due 2020, representing 22% of the total. Legacy has not retired any of the 8% notes or 6.625% notes it has repurchased to date and, subject to certain restrictions, retains its voting rights under the corresponding indentures.

As part of the foregoing transactions, Legacy and certain funds managed by GSO Capital Partners LP, amended the second lien term loan including an increase in the amount of aggregate commitments from $300 million to $400 million, extending the availability of borrowings under the second lien term loan to October 25, 2019.

Legacy funded the repurchase of the 6.625% notes with its newly-amended second lien term loan. Legacy will have approximately $339 million drawn under the second lien term loan after the repurchase, leaving approximately $61 million of remaining availability.

Separately, Legacy paid cash and issued new units to Fir Tree under a 12-month standstill and voting agreement, limiting their ability to acquire additional Legacy securities and agreeing to vote their units in accordance with the recommendation of the board of Legacy’s general partner and generally support Legacy’s actions.

“This opportunity to reduce total debt outstanding and gain meaningful voting control of our senior notes marks another great stride in improving Legacy's financial position in an otherwise difficult market,” Paul T. Horne, Legacy’s chairman of the board, president and CEO, said.

“I want to thank the GSO team for their continued support of Legacy. We look forward to making further progress in 2018,” Horne said.