Independent natural gas Ultra Petroleum Corp. said Wednesday it entered into an agreement with 13 institutional investors for the private placement of $500 million in senior unsecured notes.
The offering will be made through subsidiary Ultra Resources, the company said in a statement.
Ultra said it expects the notes will be issued in a series of tranches: $116 million with a 4.98 percent rate due in 2017; $207 million with a 5.5 percent rate due in 2020, $87 million with a 5.6 percent rate due in 2022; and $90 million with a 5.85 percent rate due in 2025.
The offering is expected to close before the mid-February.
Proceeds will be used to repay debt and for general corporate purposes, including funding of the company's previously announced acquisition.
Shares of Ultra rose 37 cents to $51.67 in afternoon trading.