LINN Energy entered into a new $500 million senior secured reserve-based revolving credit facility with Royal Bank of Canada as administrative agent.

Concurrent with entry into the new credit facility, LINN repaid in full and terminated its prior credit facility with Wells Fargo Bank as administrative agent. This new facility provides LINN with significantly more financial flexibility to reinvest in core growth assets and/or return value to shareholders through share repurchases and cash dividends.

Highlights of the new credit facility include:

• Three-year term with maturity in August 2020 with improved interest rates of LIBOR plus 250 bps to 350 bps
• An initial borrowing base of $500 million, with redeterminations semi-annually beginning March 1, 2018
• Completely undrawn at closing with approximately $7 million in outstanding letters of credit
• Greater flexibility for the full $200 million share repurchase program and increased ability to authorize cash dividends to shareholders

“This new credit facility significantly improves the company’s financial flexibility as we continue to evaluate ways to increase shareholder value. We would like to thank RBC and all the participating banks who have supported us through this process,” said Mark E. Ellis, president and CEO.

Headquartered in Houston, LINN’s core focus is the upstream and midstream development of the Merge/SCOOP/STACK in Oklahoma.