Ultra Petroleum plans to sell $1.2 billion of notes in two tranches

By Paul A. Harris

Portland, Ore., March 31 – Ultra Resources Inc., a subsidiary of Ultra Petroleum Corp., plans to sell $1.2 billion of senior notes, according to a market source.

The deal is expected to include $700 million of five-year notes and $500 million of eight-year notes.

The overall amount of the bond deal is decreased by $200 million, as the company elected to shift that mount of proceeds to its concurrent term loan, increasing it to $800 million from $600 million.

Barclays, Goldman Sachs Bank USA and BMO Capital Markets are the bookrunners on the loan. Commitments are due on Monday.

Proceeds will be used for general corporate purposes and to fund the repayment of certain claims under an approved reorganization plan.

Other exit financing is expected to come from an up to $400 million revolver, $1.4 billion of unsecured senior notes and $580 million of proceeds from a rights offering.

The borrower is a Houston-based explorer, producer and distributor of oil and natural gas.

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