LINN Energy To Explore Strategic Alternatives; Stock Plunges

(RTTNews) - LINN Energy, LLC (LINE) and LinnCo, LLC (LNCO) announced that it has initiated a process to explore strategic alternatives to strengthen its balance sheet and maximize the value of the Company.

LINE closed Thursday trading at $1.20. In the after-hours, the stock dropped $0.32 or 26.67%.

Mark Ellis, Chairman, President and Chief Executive Officer said, " given commodity pricing pressure and the impact that market challenges are expected to have on our industry and the long-term financial outlook of our Company, we believe it is prudent to explore opportunities to strengthen our balance sheet and ensure we have adequate financial flexibility to manage through prolonged commodity price headwinds. By proactively undertaking this process now with the help of our advisors, we believe we can implement a comprehensive solution that will position LINN for long-term success."

LINN's Board of Directors and management are in the process of evaluating strategic and financial alternatives to help provide the Company with financial stability but no assurance can be given as to the outcome or timing of this process.

The company has retained Lazard as its financial advisor and Kirkland & Ellis LLP as its legal advisor to assist the Board of Directors and management team with the strategic review process. Baker Botts LLP will continue to provide ongoing corporate and finance representation.

The company said that it recently borrowed approximately $919 million from LINN's credit facility, which represented the remaining undrawn amount that was available under the Credit Facility. These funds are intended to be used for general corporate purposes. Total borrowings under the Credit Facility are now $3.6 billion. Berry Petroleum Company LLC's credit facility remains fully utilized at $900 million, including $250 million of restricted cash posted as collateral.