UPDATE 1-Linn Energy to buy assets in Michigan for $330 mln

Mon Mar 22, 2010 6:04pm EDT

* Says to buy natural gas assets from HighMount Exploration * Says the asset currently produces 30 mmcfe/d * To offer 12 mln units

* Shares down 2 pct after the bell

March 22 (Reuters) - Linn Energy LLC (LINE.O) said it will buy natural gas assets in the Antrim Shale of northern Michigan from HighMount Exploration & Production LLC for $330 million, and will offer 12 million units to part-fund the deal. The Antrim shale assets currently produce about 30 million cubic feet of natural gas per day with proved reserves of more than 266 billion cubic feet of natural gas equivalent.

Barclays Capital, RBC Capital Markets Corporation, Citi, UBS and Wells Fargo Securities will be the book-running managers for the public offering.

The underwriters will have an option to purchase up to an additional 1.8 million units.

Separately, the company said it will privately offer $500 million of its senior unsecured notes due 2020 to reduce debt and unwind certain interest rate derivative contracts.

Shares of the Houston-based company fell 2 percent to $25.50 in trading after the bell. They closed at $25.99 Monday on Nasdaq. (Reporting by Thyagaraju Adinarayan in Bangalore; Editing by Jarshad Kakkrakandy)

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