HOUSTON, Aug. 07, 2017 (GLOBE NEWSWIRE) — LINN Energy, Inc. (OTCQB:LNGG) (“LINN” or the “Company”) together with its subsidiaries, announces it has entered into a new $500 million senior secured reserve-based revolving credit facility (“new credit facility”) with Royal Bank of Canada (“RBC”) as administrative agent. Concurrent with entry into the new credit facility, LINN repaid in full and terminated its prior credit facility with Wells Fargo Bank as administrative agent. This new facility provides LINN with significantly more financial flexibility to reinvest in core growth assets and/or return value to shareholders through share repurchases and cash dividends.
Highlights of the new credit facility include, among other things:
- Three-year term with maturity in August 2020 with improved interest rates of LIBOR plus 250 bps to 350 bps
- An initial borrowing base of $500 million, with redeterminations semi-annually beginning March 1, 2018
- Completely undrawn at closing with approximately $7 million in outstanding letters of credit
- Greater flexibility for the full $200 million share repurchase program and increased ability to authorize cash dividends to shareholders
“This new credit facility significantly improves the Company’s financial flexibility as we continue to evaluate ways to increase shareholder value. We would like to thank RBC and all the participating banks who have supported us through this process,” said Mark E. Ellis, President and Chief Executive Officer.
“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,” added Evan Lederman, Chairman of the Board of Directors.
ABOUT LINN ENERGY
LINN Energy, Inc. was formed in February 2017 as the reorganized successor to LINN Energy, LLC. Headquartered in Houston, Texas, the Company’s core focus is the upstream and midstream development of the Merge/SCOOP/STACK in Oklahoma. Additionally, the Company is pursuing emerging horizontal opportunities in the Mid-Continent, Rockies, North Louisiana and East Texas while continuing to add value by efficiently operating and applying new technology to a diverse set of long-life producing assets. More information about LINN Energy is available at www.linnenergy.com.