New Issue: Linn Energy prices downsized $256 million of 9 7/8% 10-year notes at 97.684 to yield 10¼%

By Paul A. Harris

St. Louis, June 24 - Linn Energy, LLC priced a downsized $256 million issue of 9 7/8% 10-year senior notes (B3/B-) at 97.684 to yield 10¾% on Tuesday, according to an informed source.

The yield was printed on top of price talk that was increased from earlier yield talk of 9¾%. The issue was downsized from $400 million.

Lehman Brothers was the lead bookrunner. BNP Paribas, Credit Suisse, Deutsche Bank Securities and RBC Capital Markets are joint bookrunners.

The notes were sold via Rule 144A with registration rights and Regulation S.

Proceeds will be used to repay bank debt.

The issuer is a Houston-based independent oil and gas company.

Issuer: Linn Energy, LLC

Amount: $255.927 million

Maturity: July 1, 2018

Security description:	Senior notes
Lead bookrunners:	Lehman Brothers
Joint bookrunners:	BNP Paribas, Credit Suisse, Deutsche Bank Securities, RBC Capital Markets
Coupon:	9 7/8%
Price:	97.684
Yield:	10¼%
Spread:	616 bps
Call features:	Callable on July 1, 2013 at 104.938, 103.292, 101.646, par on and after July 1, 2016
Equity clawback:	Until July 1, 2011 for 35% at 109.875
Change of control put:	101.0
Trade Date:	June 24
Settlement date:	June 27
Ratings:	Moody's: B3
	Standard & Poor's: B-
Distribution:	Rule 144A with registration rights/Regulation S
Price talk:	10¼% increased from 9¾% area

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