Linn Energy sets Jan. 14 launch for $400 million second-lien term loan

By Sara Rosenberg

New York, Jan. 7 - Linn Energy LLC has scheduled a bank meeting for Jan. 14 in Houston to launch its proposed $400 million 18-month second-lien term loan, according to a market source.

BNP Paribas and RBC are the joint lead arrangers and bookrunners on the deal.

The term loan is priced at Libor plus 500 basis points and will be offered to investors with a 50 bps upfront fee, the source said.

Proceeds will be used to help fund the company's acquisition of certain oil and gas properties located primarily in the Mid-Continent from Lamamco Drilling Co. for a contract price of $552 million, subject to purchase price adjustments.

Other acquisition financing will come from borrowings under the company's existing revolving credit facility.

Debt to capitalization will be around 45% and debt to EBITDA will be around 3.0 to 3.5 times.

Linn Energy is a Houston-based independent oil and gas company.

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