LINN Energy Inc. entered a new $500 million senior secured reserve-based revolving credit facility to help improve its financial flexibility.
Concurrently, LINN repaid in full and terminated its previous credit facility with Wells Fargo Bank as administrative agent. The new facility has Royal Bank of Canada as administrative agent.
The facility has an initial borrowing base of $500 million, a three-year term with maturity in August 2020 and a greater flexibility for the full $200 million share repurchase program, among other terms, according to an Aug. 7 news release.
"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," said Evan Lederman, chairman of LINN's board of directors.
LINN recently emerged from Chapter 11 restructuring, eliminating more than $5 billion in debt.