By Sheri Kasprzak
New York, July 2 - Linn Energy, LLC is gearing up to settle a $1.5 billion private placement of units as part of its $2.05 billion acquisition of oil and gas properties from Dominion Resources, Inc.
A group of investors led by Lehman Brothers MLP Opportunity Fund and including Zimmer Lucas Partners, LLC and GPS Partners LLC plans to buy 13 million units and 35 million class D units for a blended price of $31.25 each.
Lehman Brothers Inc., Citigroup Global Markets Inc. and RBC Capital Markets Corp. were the lead agents for the deal.
The offering will close simultaneously with the acquisition, which is expected to close before Oct. 1.
The company also announced Monday that it expects the acquisition will increase its borrowing base to between $1.6 billion and $1.8 billion from $765 million.
Linn, based in Houston, is an oil and natural gas company focused on developing and acquiring properties.
| Issuer: | Linn Energy, LLC
|
| Issue: | Units
|
| Amount: | $1.5 billion
|
| Units: | 13 million common units; 35 million class D units
|
| Price: | $31.25
|
| Warrants: | No
|
| Placement agents: | Lehman Brothers Inc., Citigroup Global Markets Inc., RBC Capital Markets Corp. (lead)
|
| Investors: | Lehman Brothers MLP Opportunity Fund (lead), Zimmer Lucas Partners, LLC; GPS Partners LLC
|
| Announcement date: | July 2
|
| Stock symbol: | Nasdaq: LINE
|
| Stock price: | $32.91 at close June 29
|
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