Entering text into the input field will update the search result below

Reuters: Linn Energy exploring debt restructure options

Nov. 12, 2015 6:48 PM ETRoan Resources, Inc. (ROAN) StockLNCOQ, ROANBy: Carl Surran, SA News Editor32 Comments
  • Linn Energy (LINE, LNCO) is working with Barclays in exploring distressed restructuring options, as the oil price collapse tests its ability to service $10B of debt after next year, Reuters reports.
  • One of the potential options to raise liquidity is said to be a deal with Franklin Income Fund to swap the mutual fund's unsecured bonds with a new second-lien secured loan; Franklin, which has invested in the debt of other distressed drillers such as Halcon Resources and SandRidge Energy, holds unsecured bonds in Linn once worth nearly $1B but trading at $236M at the end of Q3.
  • Linn has no major maturities until 2019 but its hedge book will begin to roll off into much lower commodity prices in 2016, hitting EBITDA and pressuring cash flow coverage of interest and debt starting next year, according to Moody's.

Recommended For You

Related Stocks

SymbolLast Price% Chg
ROAN--
Roan Resources, Inc.