Independent oil and gas company Linn Energy LLC (NASDAQ: LINE) today priced an IPO of its wholly owned subsidiary LinnCo LLC (NASDAQ: LNCO) at $36.50 per common share. The company had earlier said that it would price LinnCo shares within 5% of the closing price of Linn’s closing price on the day before the IPO.
The implied range based on Linn’s statement was $38.01 to $42.01 based on last night’s closing price of $40.01 for Linn’s common units.
Each share of LinnCo represents one common unit of Linn, which is structured much like a master limited partnership (MLP). LinnCo shareholders will own 13.2% of Linn.
By structuring LinnCo as a corporation, Linn hopes to attract institutional investors and pension funds that are often unable to buy into partnerships. MLPs often dodge this restriction by offering publicly traded shares in their general partners. Linn, which does not have a general partner, chose this spinoff as its alternative.
Linn’s current distribution to common unitholders totals $2.90 annually. If the company maintains that level of payouts, LinnCo shareholders will receive $2.75 to $2.84 after taxes.
Shares of Linn are up about 1% at $40.40 this morning in a 52-week range of $34.43 to $42.25.
Shares of LinnCo are up about 2% at $37.24 on volume of 6 million shares.
Paul Ausick
100 Million Americans Are Missing This Crucial Retirement Tool
The thought of burdening your family with a financial disaster is most Americans’ nightmare. However, recent studies show that over 100 million Americans still don’t have proper life insurance in the event they pass away.
Life insurance can bring peace of mind – ensuring your loved ones are safeguarded against unforeseen expenses and debts. With premiums often lower than expected and a variety of plans tailored to different life stages and health conditions, securing a policy is more accessible than ever.
A quick, no-obligation quote can provide valuable insight into what’s available and what might best suit your family’s needs. Life insurance is a simple step you can take today to help secure peace of mind for your loved ones tomorrow.
Click here to learn how to get a quote in just a few minutes.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.