Ultra Petroleum announces $500M note offering

AP News
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Posted: Dec 23, 2009 2:21 PM

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.