Why Linn Energy LLC (LINE) Stock Is Sinking Today

Advertisement

Linn Energy LLC (NASDAQ:LINE) shares were down on Tuesday following the pricing of the company’s new public stock offering.

linn-energy-llc-lineLinn Energy announced that its secondary public offering will have shares priced at $11.79. The offering includes 16 million shares and underwriters will have a 30-day option to purchase up to an additional 2,400,000 shares.

Linn Energy is expecting to make net proceeds of $181 million to $208 million from the offering. However, the high end of these expectations is only possible if underwriters use their ability to buy additional LINE shares.

Linn Energy plans to use the proceeds from the public offering to pay back some of its debt. This debt was accumulated mainly from the repurchase of Linn and Berry’s senior notes.

LINE shares were down 10% as of Tuesday afternoon.

More From InvestorPlace


Article printed from InvestorPlace Media, https://investorplace.com/2015/05/linn-energy-llc-line/.

©2024 InvestorPlace Media, LLC