LINN Energy finalizes strategic alliance with Quantum
07/07/2015 12:46

LINN Energy, LLC announced that LINN has signed definitive agreements with private capital investor Quantum Energy Partners to fund selected future oil and natural gas acquisitions and the development of acquired assets (AcqCo).

Quantum has agreed to initially commit up to USD 1 billion of equity capital to fund acquisitions and development of oil and natural gas assets. LINN will have the ability to participate in all acquisition opportunities with a direct working interest ranging from 15 per cent to 50 per cent. AcqCo assets will be managed by LINN in exchange for reimbursement of general and administrative expenses. Additionally, after certain investor return hurdles are met, LINN will have the ability to earn a promoted interest in AcqCo. Upon the sale of any assets within AcqCo, LINN will be given right of first offer to acquire the assets.

Jefferies LLC acted as financial advisor to LINN for the AcqCo agreement. In addition, Latham & Watkins provided legal advice to LINN while Vinson & Elkins provided legal advice to Quantum.