I own $xxx worth of Linn bonds and am therefore a very interested party regarding the health of the company. I am writing to you seeking clarification over a statement made in the recent announcement of the $2B debt swap. It was stated that the issuance of $1B in junior secured debt left a remaining capacity of $500M. It was also stated previously that the company had bank permission to issue up to $3B in junior secured debt for debt swap purposes. I am wondering how $3B - $1B becomes $500M! Can you please enlighten me as to what happened?
Management needs to pre announce what the distribution will be - even if only a few cents per quarter. And protect the preferreds by reaffirming the distribution.
Or buy the damn things back and save 40% interest.
If considered insolvent, there is no tax. Could be.
In the quarterly report, Linn reveals it has negotiated the right to give Linnco funds to pay its taxes
Does break even include capex? Because if survival is the question, capex would be severely reduced
I have been following mlp's since 2008 and have never seen one with a significant quarterly distribution act like this one. Very strange
$3B in equity just went poof. Even if they swap their entire $2B in bonds for $1B in junior debt like Linn did, they still have negative equity
You also have to pay the accrued interest to buy the bond...which you may never receive. So it's not quite that big of a bargain
Those puts won't hurt their cash flow at all. When oil hits $28 a barrel - and it will - those puts are worth double what they paid. Let's hope they monetize them at that point and pay down the line further
"Legacy Reserves LP - 8.00% Series B Fixed-to-Floating Rate Cumulative Redeemable Perpetual Preferred Units (LGCYO) Stock "