Ultra Resources closes $1 billion revolving facility, expires in 2016

By Aleesia Forni

Columbus, Ohio, Oct. 12 - Ultra Resources Inc., a subsidiary of Ultra Petroleum Corp., entered into a $1 billion five-year senior unsecured revolving credit facility on Oct. 6.

According to an 8-K filed with the Securities and Exchange Commission, the revolver may be increased to $1.25 billion at the lenders' consent and provides for the issuance of up to $250 million in letters of credit.

Borrowings under the facility will bear interest at a rate based on the company's consolidated leverage ratio, ranging from Libor plus 150 basis points to 250 bps.

Commitment fees range from 25 bps to 50 bps.

Initially, pricing on the revolver is set at Libor plus 175 bps, with a commitment fee of 30 bps.

The new revolver may be extended for up to two one-year periods at the company's request.

The facility replaces the company's existing agreement, dated April 2007.

This agreement includes restrictive covenants that require the company to maintain a consolidated leverage ratio of no more than 3.50 to 1.00 and a net present value of the company's oil and gas properties to total funded debt of no less than 1.50 to 1.00.

J.P. Morgan Securities LLC is bookrunner and lead arranger, while JPMorgan Chase Bank NA serves as administrative agent.

Citibank NA and Deutsche Bank Trust Co. Americas are co-syndication agents.

Compass Bank, U.S. Bank NA and Wells Fargo Bank NA are co-documentation agents.

Ultra is a Houston-based company focused on the acquisition, development and production of oil and natural gas properties.

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