Ultra Resources Inc. will offer $700 million of senior unsecured notes due 2022 and $500 million of senior unsecured notes due 2025 in a private placement, parent Ultra Petroleum Corp. said April 3.
Ultra Petroleum (OTC: UPLMQ) will use the proceeds, together with other exit financings and cash on hand, to fund distributions provided for under a comprehensive reorganization plan of Ultra and its subsidiaries, which was approved by the U.S. Bankruptcy Court for the Southern District of Texas on March 14. The funds will also pay certain fees, commissions and related expenses.
Ultra Petroleum also reported April 3 that the proposed senior secured first-lien RBL term loan was increased to $800 million from $600 million, and that the proposed borrowing base was increased to $1.2 billion from $1 billion.
The facility is being raised in connection with Ultra's emergence from Chapter 11 proceedings, the press release said.
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