Kosmos Energy refinances lending facility to $1.35 billion and 2029

Kosmos Energy Ltd on Monday said it successfully refinanced its reserve-based lending facility, extending the final maturity by three years to December 2029. Kosmos Energy is a Texas-based oil & gas producer focused on Ghana, Guinea and the US Gulf of Mexico.

It said the total facility size also increased to $1.35 billion from $1.25 billion, with current commitments of around $1.2 billion. Discussions with additional potential lenders are ongoing, Kosmos Energy said, and are expected to increase commitments later this year towards the RBL facility size. It said $800 million is currently drawn against the RBL facility with the first amortisation payment scheduled for April 1, 2027. Kosmos Energy said the facility is secured against its production assets in Ghana and Equatorial Guinea, while its assets in the US Gulf of Mexico, Mauritania and Senegal ‘remain unencumbered’.

The interest margin payable on the facility ‘increased slightly’ compared to the previous facility, Kosmos Energy said, ‘reflecting the current banking market environment’. It said the new interest margin begins at 400 basis points above the secured overnight financing rate for the first two years. As part of the refinancing, Kosmos Energy said it has downsized its revolving credit facility to $165 million from $250 million, with some banks some banks transferring their commitments from the RCF to the RBL facility in anticipation of the RCF maturing at the end of 2024.

‘Re-financing the RBL facility is another important step to optimize Kosmos’ capital structure and proactively address our debt maturities,’ said Chief Financial Officer Neal Shah. ‘With the re-financing of the RBL and the recent convertible bond issuance, we have no maturities until 2026 and lower interest expense going forward. We thank our bank group for their continued support as we grow the company.’ Shares in Kosmos Energy were untraded and quoted at 474 pence each in London on Monday morning.

Source: sharesmagazine.co.uk