Houston-based Linn Energy LLC (Nasdaq: LINE) plans to redeem 35% of both of its $250 million of 11.75% senior notes due 2017 and $256 million of 9.875% senior notes due 2018. The redemptions will retire a total of approximately $177 million of senior notes with a weighted average interest rate of 10.8%.
"We are pleased to retire a portion of our highest-cost debt, which will reduce our future interest expense," says Kolja Rockov, executive vice president and chief financial officer. "Our current cost of capital is significantly lower than when we originally issued these notes. We believe this reflects the strength and size of Linn Energy."
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