Linn Energy secures $1.5 billion from units; American Home pockets $125 million

By Sheri Kasprzak

New York, July 2 - Linn Energy, LLC led PIPE action in a big way ahead of the July 4 holiday.

The oil company announced plans to wrap a $1.5 billion unit deal as part of its acquisition of oil and gas properties from Dominion Resources, Inc.

The acquisition is expected to cost $2.05 billion and close before October. The PIPE is set to close along with the acquisition.

The placement includes 13 million common units and 35 million class D units at a blended price of $31.25 each.

The units will be purchased by a group of investors led by Lehman Brothers MLP Opportunity Fund and including Zimmer Lucas Partners, LLC and GPS Partners LLC.

Lehman Brothers Inc., Citigroup Global Markets Inc. and RBC Capital Markets Corp. were the lead agents for the deal.

The company's stock jumped by 13.49%, or $4.44, on Monday to settle at $37.35 (Nasdaq: LINE).

Event is 'transforming'

The company also announced on Monday that it expects the acquisition will increase its borrowing base to between $1.6 billion and $1.8 billion from $765 million.

"This is a transforming event for our company that demonstrates our ability to move quickly and take advantage of a remarkable acquisition opportunity," said Michael Linn, the company's chief executive officer, in a news release.

"In addition to doubling our total proved reserve base to approximately 1.6 [trillion cubic feet equivalent], this acquisition will establish Linn Energy as one of the top producers in the mid-continent and will significantly increase our inventory of development opportunities for future growth potential ... We will finance the acquisition with a combination of private equity and bank debt to preserve our balance sheet flexibility and position us for additional consolidation opportunities in the future."

Linn, based in Houston, is an oil and natural gas company focused on developing and acquiring properties.

In the broader market, volume got off to a heavy start this week. The volume surprised one sellsider.

"I have to say I didn't expect it to be like this today," he said. "We aren't doing a whole lot this week because so many people are off this week, but if I had to hazard a guess, I'd say folks are just getting things done ahead of the holiday."

American Home's $125 million deal

In other PIPE news, American Home Mortgage Investment Corp. said Monday it plans to repurchase a portion of its $128.866 million in 9.75% junior subordinated convertible debentures with the proceeds of its $125 million private placement of convertible junior subordinated trust preferred securities.

Funds managed by Marathon Asset Management, LLC bought 9.75% trust preferred securities that are convertible into common shares at $25.57 each.

The debentures to be repurchased are due July 1, 2037.

On Monday, the company's stock fell by 32 cents, or 1.74%, to close at $18.06 (NYSE: AHM).

Based in Melville, N.Y., American Home Mortgage is a real estate investment trust focused on residential mortgage loans.

PlanetOut secures $26.22 million

Elsewhere, PlanetOut, Inc. plans to complete a $26.22 million offering of stock with a group of new and existing institutional investors.

News of the deal Monday morning sent PlanetOut's stock jumping early in the session, gaining 24.46%, or 33.76 cent, by 10 a.m. ET. At the end of the day, the stock had climbed by 15.22%, or 21 cents, to close at $1.59 (Nasdaq: LGBT).

The investors, including Special Situations Fund; Cascade Investment, LLC; SF Capital Partners; PAR Investment Partners LP; and Allen & Co. LLC, agreed to buy 22.8 million shares at $1.15 each.

Allen & Co. LLC was the placement agent.

The offering is expected to close on July 6.

San Francisco-based PlanetOut is an entertainment company focused on providing products and services to the lesbian, gay, bisexual and transgendered community.

Nanophase raises $11.25 million

In the tech sector, Nanophase Technologies, Inc. pocketed $11.248 million from a registered direct placement of shares.

The company sold 1.9 million shares at $5.92 each to institutional investors. The share price was a 4% discount to the 10-day volume-weighted average price of the company's stock for the period ended Thursday.

Global Crown Capital, LLC was the placement agent.

The shares were sold under the company's shelf registration.

The company intends to withdraw the remaining 100,000 shares from its shelf.

The proceeds from the placement will be used for the acquisition and installation of equipment and for the expansion of the company's Romeoville, Ill., facility. The rest will be used for general corporate purposes.

The company's stock gained 4 cents on Monday to close at $6.13 (Nasdaq: NANX).

Based in Romeoville, Ill., Nanophase develops nano-materials and nano-engineered products.

Primus stock slips

Moving to secondary market action, Primus Telecommunications Group, Inc.'s stock fell slightly on Monday after the company announced its $20,587,500 direct placement of stock on Friday.

The stock dipped by 4 cents to end the session at $0.96 (OTCBB: PRTL). On Friday, the company's stock climbed by 6 cents, or 6.38%, to close at $1.00.

In the offering, the company sold shares at $0.915 each to a group of institutional investors.

The shares were sold under the company's shelf registration.

CRT Capital Group LLC was the agent for the deal.

Based in McLean, Va., Primus is a telecommunications company focused on voice-over-internet protocol and wireless data services.

Antares stock climbs

In other secondary market action, Antares Pharma Inc.'s stock gained more than 5% on Monday after announcing its planned $15.04 million placement of stock.

The stock gained 8 cents to end the day at $1.66 (Amex: AIS). On Friday, the company's stock fell by 9.71%, or 17 cents, to close at $1.58.

In the placement, the company intends to sell shares at $1.60 each to a group of institutional investors.

Oppenheimer & Co. Inc. is the agent.

Proceeds will be used for the phase 3 clinical study of the company's Anturol product and for the advancement of new products in the pipeline. The rest will be used for working capital and general corporate purposes.

Located in Ewing, N.J., Antares develops drug delivery systems, including a transdermal patch.

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