Linn Energy prices public offering at $164 million

Linn Energy prices public offering of 7.5 million units, totaling $164 million

• On 2:44 pm EDT, Wednesday October 7, 2009

HOUSTON (AP) -- Linn Energy LLC priced its public offering Wednesday of 7.5 million units at $21.90 per unit, yielding $164.3 million.

The underwriters have an option to purchase up to 1.1 million additional units.

The Houston-based natural gas and oil producer said it expects to receive net proceeds of about $157 million, or $181 million if the underwriters exercise their option to purchase the additional units, and intends to use the entire proceeds to repay debt.

Linn Energy initially planned to issue 6 million units but increased the offering by 25 percent, to 7.5 million units due to "investor enthusiasm," spokeswoman Paula F. Beasley said in an e-mail.

The offering price is less than Tuesday's closing price of $23.14, which Beasley said is not uncommon.

The offering is expected to settle and close Oct. 13.

Citi, Barclays Capital and RBC Capital Markets acted as joint book-running managers.

Shares fell 60 cents, or 2.6 percent, to $22.54 in afternoon trading.