Company Update (NASDAQ:LINE): Linn Energy LLC Enters Into a Settlement Agreement With Certain Senior Secured Second Lien Noteholders
Linn Energy LLC (NASDAQ:LINE) announced that it has entered into a settlement agreement (the “Settlement Agreement”) with certain holders of the Company’s $1.0 billion of outstanding 12 percent Senior Secured Second Lien Notes due 2020 (the “Second Lien Notes”), which collectively hold more than two-thirds of the outstanding principal amount of the Second Lien Notes. Under the terms of the Settlement Agreement, the Company delivered the mortgages associated with the Second Lien Notes and is no longer in default under the Indenture governing the Second Lien Notes.
The Settlement Agreement provides that Linn and the Second Lien Note holders will commence good faith negotiations with each other regarding the terms of a potential comprehensive and consensual restructuring of the Company’s indebtedness, including a potential restructuring under a chapter 11 plan of reorganization. The Company expects to continue operations throughout this process. The Settlement Agreement has been filed on Form 8-K with the U.S. Securities and Exchange Commission. (Original Source)
Shares of Linn Energy are falling nearly 17% to $0.29 in after-hours trading. LINE has a 1-year high of $14.21 and a 1-year low of $0.26. The stock’s 50-day moving average is $0.66 and its 200-day moving average is $1.62.
On the ratings front, Linn has been the subject of a number of recent research reports. In a report issued on February 18, Wells Fargo analyst Praneeth Satish downgraded LINE to Sell, with a price target of $0.50, which represents a potential upside of 43.3% from where the stock is currently trading. Separately, on February 12, Citigroup’s Faisel Khan downgraded the stock to Sell .
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Praneeth Satish and Faisel Khan have a total average return of -17.9% and 10.5% respectively. Satish has a success rate of 25.0% and is ranked #3488 out of 3777 analysts, while Khan has a success rate of 68.0% and is ranked #396.
Linn Energy, LLC is a oil and natural gas company, which engages in development, exploitation and acquisition of natural gas. It seeks to be the operator of its properties so that it can develop drilling programs and projects. The company was founded by Michael C. Linn on March 14, 2003 and is headquartered in Houston, TX.