Linn Energy to repay some bank loans via $263 million asset sale

By Wendy Van Sickle

Columbus, Ohio, May 23 – Linn Energy, LLC plans to pay down debt under its revolving credit facility and term loan using proceeds of another asset sale, according to a press release.

The company has agreed to sell its interest in properties in the San Joaquin Basin in California to an undisclosed buyer for a contract price of $263 million.

This sale represents the first executed agreement of Linn’s non-core divestiture program.

In early May, Linn said it had agreed to sell its stake in properties in western Wyoming to Jonah Energy LLC for a contract price of $581.5 million, bringing the total contract prices of sale agreements year-to-date to $844.5 million, all of which is expected to be used to reduce revolving and term loan borrowings.

Pro-forma for these transactions, the company said it expects to have less than $50 million of total debt outstanding.

The sale is expected to close by July 31.

Linn Energy, a Houston-based oil and gas company, filed for bankruptcy on May 11, 2016. The Chapter 11 case number is 16-60040.

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