Ultra Petroleum debtor gets $85 million offering backstop commitment

By Caroline Salls

Pittsburgh, July 29 – Ultra Petroleum Corp. entered into a backstop purchase agreement under which the backstop parties will buy a percentage of base rights offering securities that have not been subscribed for in the UP Energy Corp. debtor’s rights offering, according to an 8-K filed Wednesday with the Securities and Exchange Commission.

Ultra Petroleum said UP Energy has offered to sell shares of common stock in its reorganized company at par to eligible holders of first-lien term loan claims.

The priority backstop parties have agreed to purchase up to $85 million of those securities in exchange for a put option premium equal to 7.5% of the rights offering amount, payable in shares of new common stock.

The agreement requires the transaction to close by Nov. 3.

Ultra Petroleum is a natural gas and oil exploration, development and production company based in Englewood, Colo. The company filed bankruptcy on May 14 in the U.S. Bankruptcy Court for the Southern District of Texas under Chapter 11 case number 20-32631.

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