Linn Energy disclosed it has borrowed roughly $919 million under its credit facility, which is the remaining amount available under the facility. Proceeds are earmarked for general corporate purposes.
S&P yesterday downgraded Linn’s corporate credit rating to CCC, from B+, and Linn’s subsidiary Berry Petroleum to CCC, from B+. Linn is rated Caa1 by Moody’s.
Linn Energy, meanwhile, yesterday announced that it has started a process to explore strategic alternatives to strengthen its balance sheet. The company has retained Lazard as its financial advisor.
Following this roughly $919 million borrowing, the aggregate utilization under the credit facility is $3.6 billion, including the $500 million term loan and roughly $6 million of outstanding letters of credit. The credit facility matures in April 2019.
Wells Fargo is administrative agent.
As reported, Linn Energy in October 2015 reduced the borrowing base under its revolver to $3.6 billion, from $4.05 billion, via an amendment that relaxed an interest-coverage covenant.
Houston-based Linn Energy is an independent oil and natural gas company that trades on the Nasdaq under the ticker LINE. LINN acquired Berry Petroleum in 2013. — Richard Kellerhals
This story first appeared on www.lcdcomps.com, LCD’s subscription service offering comprehensive coverage of the global leveraged loan and high yield debt markets.