Linn Energy to use sale proceeds to repay term loan, reduce revolver

By Toni Weeks

San Luis Obispo, Calif., Dec. 15 – Linn Energy, LLC said it will use the combined net proceeds of two asset sales to repay in full its $1.3 billion term loan and to reduce borrowings under its revolving credit facility.

Following these repayments, the company will have pro forma liquidity of about $2.4 billion as of Sept. 30, according to a press release.

The company closed on the sale of its entire position in the Granite Wash and Cleveland plays to affiliates of EnerVest, Ltd. and FourPoint Energy, LLC on Monday. It completed the sale of its Wolfberry positions to Fleur de Lis Energy, LLC on Nov. 14.

Following the term loan repayment, lenders under the company’s credit facilities will complete the semiannual redetermination, increasing Linn’s borrowing base to $4.5 billion and reaffirming the $1.4 billion borrowing base for subsidiary Berry Petroleum Co., LLC.

As a result of the redetermination, the maximum credit amount under Linn’s credit facility will be restored to $4 billion, while the commitment amount under Berry’s credit facility will remain unchanged at $1.2 billion.

Linn’s borrowing base had been reduced by $275 million in connection with its $1.1 billion unsecured notes offering in September.

The maturity date for the Linn and Berry credit facilities and Linn’s outstanding $500 million term loan is April 2019, the release noted.

The oil and natural gas exploration and production company is based in Houston.

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