Linn Energy to retire revolver, loan via another non-core asset sale

By Susanna Moon

Chicago, May 30 – Linn Energy, LLC plans to retire the debt under its revolving credit facility and term loan using proceeds of its second sale of non-core assets.

Linn has agreed to sell its interest in properties located in the Salt Creek Field in Wyoming to Denbury Resources Inc. for a contract price of $71.5 million, according to a company announcement.

So far this year, the company has lined up $916 million of sale agreements with proceeds to be used to repay the revolver and term loan.

The company “continues to market the previously announced non-core asset sales and there remains significant interest in each of those packages,” the release noted.

Said Mark Ellis, chief executive officer, and Evan Lederman, chairman: “The Salt Creek sale marks a milestone in the ongoing transformation of LINN from a highly levered production-based MLP to a streamlined growth-oriented enterprise.

“Pro-forma following the closing of the Jonah, South Belridge and Salt Creek asset sales, the company will have extinguished all remaining outstanding debt.”

The company said it had $8.4 billion of debt outstanding at the end of 2015.

The deal is expected to close in the second quarter of 2017 with an effective date of March.

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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