Bill Barrett Corp. undertook a privately negotiated exchange with a holder of its 7.625% senior notes due 2019, the company said June 2.

The noteholder will exchange about $84.7 million of the notes for 10 million newly issued Bill Barrett common shares plus the cash payment of accrued and unpaid interest.

Bill Barrett reduced the principal amount of the nearest term notes by 21% and net debt by 12%, noting that about $6.5million in annual interest will be saved.

Bill Barrett Corp. is based in Denver.