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Ultra Petroleum Corp. raised the borrowing base on its senior secured revolver to $155 million after the company demonstrated to its lenders that the value of its assets had improved. The natural gas reserve exploration and production company has a semi-annual borrowing base review as part of its bank agreement, said Fox Benton, cfo, explaining that since there was an increase in Ultra Petroleum's reserves, the credit could be increased. "We drilled more wells, so we could increase the borrowing base," he said. The revolver was for $120 million before the most recent increase, but the company began with a facility for $18 million in 2000. Benton explained that the deal has since been incrementally augmented as assets have grown.

Xerox Corp. is finally in the market with a $1 billion refinancing credit after rumors that the company was staking out a deal circled the market since April (LMW, 4/21). The credit is part of the Stamford, Conn.-based company's $3.1 billion recapitalization strategy, announced last week. Citigroup, Deutsche Bank, Goldman Sachs, J.P. Morgan, Merrill Lynch and UBS Warburg lead the deal that includes a $700 million revolver and a $300 million term loan. A banker familiar with the credit said the deal was out to managing agents as of late last week and should be hitting retail investors in the near future. A Xerox filing said the new deal's pricing would range from LIBOR plus 13/4-3%, depending on leverage. The company's existing deal is priced in the LIBOR plus 4-41/2% range.

ASIA

The growing confidence in Asia's equity markets helped this week's issuers achieve unexpectedly attractive funding terms.

Barclays Capital is premarketing a landmark multi-currency transaction for veteran Australian mortgage issuer Interstar Securities.

Philippine conglomerate JG Summit returned to the bond market with a blowout $300m five year issue on Wednesday.

JP Morgan has appointed Jose Linares to take over equity research for non-Japan Asia from the end of July, as part of a global shake-up of its senior equity research leadership.

Four South Korean banks launched international bonds this week to take advantage of improved market conditions.

PT Aneka Tambang (Antam) has chosen ABN Amro as bookrunner of its debut dollar bond, a $200m five year issue planned for July.

The Bank of Japan this week fleshed out its plans to buy asset backed securities and asset backed commercial paper. The BoJ floated the idea in April and asked for reaction from the market.

HSBC closed the books yesterday (Thursday) on the IPO of Beijing Capital Land, its latest Chinese property deal.

Global co-ordinator Goldman Sachs and joint leads Merrill Lynch and UBS are premarketing the much delayed ADR offering for Taiwan's Chunghwa Telecom which could raise close to $2bn.