LINN Energy Closes $1.75B Credit Facility
LINN Energy has entered into a new $1.75 billion secured revolving credit facility with a $1.75 billion initial borrowing base, with BNP Paribas as administrative agent; Royal Bank of Canada as syndication agent; and Barclays, Calyon, Citibank and Royal Bank of Scotland as co-documentation agents. The new facility extends the maturity more than three years, to August 1, 2012. The Company anticipates undrawn capacity of approximately $300 million for the balance of the year, including net cash on its balance sheet. The covenants of the new credit facility are substantially unchanged from the prior facility.
"We are delighted to close on our new credit facility, which we believe offers favorable terms in the current market and should provide an adequate liquidity position for LINN Energy,'' said Michael C. Linn, Chairman and Chief Executive Officer. "In light of the sustained weakness in commodity prices and the global credit markets, we believe our ability to achieve favorable terms on our new facility speaks to the relative strength of our comprehensive and long-dated hedging program and the predictable, low-risk nature of our business strategy. As of year-end 2008, we have proved reserves of approximately 1.7 trillion cubic feet of natural gas equivalent, and our current production levels are hedged approximately 100 percent for the next three years. With our conservative capital budget for 2009, and approximately $300 million of liquidity, we feel confident in our ability to continue to develop our reserve base and execute on our business plan to maximize value for our unitholders."
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