By Paul A. Harris
Portland, Ore., April 7 – Ultra Resources, Inc., a subsidiary of Ultra Petroleum Corp., priced $1.2 billion of senior notes (B2/BB-/BB) in two tranches on Friday, according to a market source.
The deal included $700 million of five-year notes, which priced at par to yield 6 7/8%. The yield printed at the tight end of yield talk in the 7% area.
In addition the company priced $500 million of 7 1/8% eight-year notes at 98.507 to yield 7 3/8%. The yield printed at the tight end of yield talk in the 7½% area.
Joint bookrunner Barclays will bill and deliver for the Rule 144A and Regulation S for life offering. Goldman Sachs & Co. and BMO Securities are also joint bookrunners.
Proceeds will be used to fund the Houston-based company's obligations under its plan of reorganization.
The bond portion of the financing was downsized by $200 million, with that amount shifted to the concurrent term loan, increasing the loan size to $800 million from $600 million.
Ultra Petroleum, an explorer, producer and distributor of oil and natural gas, filed Chapter 11 bankruptcy in April 2016.
| Issuer: | Ultra Resources, Inc.
|
| Amount: | $1.2 billion
|
| Securities: | Senior notes
|
| Bookrunners: | Barclays (bill and deliver), Goldman Sachs, BMO
|
| Trade date: | April 7
|
| Settlement date: | April 12
|
| Ratings: | Moody's: B2
|
| S&P: BB-
|
| Fitch: BB
|
| Distribution: | Rule 144A and Regulation S for life
|
| Marketing: | Roadshow
|
|
|
| Five-year notes
|
| Amount: | $700 million
|
| Maturity: | April 15, 2022
|
| Coupon: | 6 7/8%
|
| Price: | Par
|
| Yield: | 6 7/8%
|
| Call: | Make-whole call at Treasuries plus 50 bps until April 15, 2019, then callable at 103.438
|
| Equity clawback: 35% at 106.875 until April 15, 2019
|
| Price talk: | 7% area
|
|
|
| Eight-year notes
|
| Face amount: | $500 million
|
| Proceeds: | $492,535,000
|
| Maturity: | April 15, 2025
|
| Coupon: | 7 1/8%
|
| Price: | 98.507
|
| Yield: | 7 3/8%
|
| Call: | Make-whole call at Treasuries plus 50 bps until April 15, 2020, then callable at 105.344
|
| Equity clawback: 35% at 107.125 until April 15, 2020
|
| Price talk: | 7½% area
|
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