LINN Energy in US$500m revolving credit facility

News | 9 August 2017

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LINN Energy has signed a senior secured three-year US$500m revolving credit facility.

The US oil and gas company will use the funds to repay and terminate its previous credit facility (with Wells Fargo as administrative agent), reinvest in its growth assets, or return value to shareholders through share repurchases and cash dividends.

LINN Energy Inc was formed in February 2017 following the bankruptcy and voluntary reorganisation of LINN Energy LLC, and now focusses on exploration and production.

"This new credit facility is another important step in LINN's transformation from a highly-levered production-based MLP to a streamlined growth-oriented enterprise. As LINN continues to build free cash flow from asset sales and operations, this new credit facility will provide the board and management with significant flexibility to return value to shareholders through additional share repurchases and cash dividends,” said Evan Lederman, chairman of the board of directors.

Royal Bank of Canada acted as administrative agent for the credit facility, which comes with an initial borrowing base of US$500m and can be reviewed every six months from 1 March 2018.

“This new credit facility significantly improves the company's financial flexibility as we continue to evaluate ways to increase shareholder value,” said Mark E. Ellis, president and chief executive officer.

“We would like to thank RBC and all the participating banks who have supported us through this process.”

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