LINN Energy, LLC (NASDAQ: LINE) has filed a registration statement with the Securities and Exchange Commission for its Linn Co, LLC subsidiary. The move will allow for an initial public offering of common shares as LinnCo has elected to be taxed as a corporation.
As a result of the move, its shareholders will receive a Form 1099 in respect of any dividends paid by LinnCo. Today’s news noted that proceeds from this offering will be used “to acquire a number of LINN units equal to the number of LinnCo shares sold in the offering. LinnCo will have no assets or operations other than related to its ownership of LINN units.”
LINN further noted that it expects to use the proceeds received from the sale of LINN units to LinnCo for general corporate purposes, which includes financing its acquisition strategy, repaying debt and paying the expenses of the offering.
LinnCo is expected to list on the NASDAQ Global Select Market under the symbol “LNCO” and as of now Barclays will act as lead book-running manager in the transaction.
LINN’s total proved reserves at December 31, 2011 were 3.4 Tcfe, of which approximately 34% were oil, 50% were natural gas and 16% were NGL.
LINN units are down 1.5% at $35.55 against a 52-week range of $31.03 to $41.13.
JON C. OGG
Take This Retirement Quiz To Get Matched With An Advisor Now (Sponsored)
Are you ready for retirement? Planning for retirement can be overwhelming, that’s why it could be a good idea to speak to a fiduciary financial advisor about your goals today.
Start by taking this retirement quiz right here from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes. Smart Asset is now matching over 50,000 people a month.
Click here now to get started.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
