Kosmos Energy Strengthens Liquidity Position With Closing of $200 Million Gulf of Mexico Facility
October 05 2020 - 2:00AM
Business Wire
Kosmos Energy (NYSE/LSE: KOS) (“Kosmos” or the “Company”)
announced today that it has closed a Gulf of Mexico facility with
Beal Bank USA and Trafigura Trading LLC (“Trafigura”).
Kosmos has restructured its previously announced Gulf of Mexico
prepayment facility into a five-year $200 million term-loan
facility secured against the Company’s U.S. Gulf of Mexico assets.
The $50 million advanced under the prepayment agreement with
Trafigura announced in June has been rolled into the new facility,
structured by CSG Investments, Inc., with the remaining $150
million provided by Beal Bank. The facility, which has an interest
rate of approximately 6%, increases the company’s borrowing
capacity by $50 million from the initial prepayment agreement,
extends the tenor to five years and includes an accordion feature
allowing the facility to be expanded up to $300 million.
“The closing and syndication of the Gulf of Mexico facility
enhances the company’s strong liquidity position with access to
low-cost, flexible financing. Along with free cash generated by our
low-cost production assets and proceeds of the recent Shell
transaction expected this quarter, the company’s balance sheet is
expected to strengthen into 2021,” said Neal Shah, Chief Financial
Officer.
As of September 30, 2020, following the closing of the Gulf of
Mexico facility, the Company has approximately $650 million of
available liquidity ahead of the conclusion of the fall RBL
redetermination which we expect to conclude shortly.
About Kosmos Energy
Kosmos is a full-cycle deepwater independent oil and gas
exploration and production company focused along the Atlantic
Margins. Our key assets include production offshore Ghana,
Equatorial Guinea and U.S. Gulf of Mexico, as well as a world-class
gas development offshore Mauritania and Senegal. Kosmos is listed
on the New York Stock Exchange and London Stock Exchange and is
traded under the ticker symbol KOS. As an ethical and transparent
company, Kosmos is committed to doing things the right way. The
Company’s Business Principles articulate our commitment to
transparency, ethics, human rights, safety and the environment.
Read more about this commitment in our Corporate Responsibility
Report. For additional information, visit www.kosmosenergy.com.
About CSG Investments, Inc. / Beal Bank / Beal Bank
USA
CSG Investments, Inc. (“CSG”) is a global buy-and-hold
institution headquartered in Dallas, Texas. CSG provides flexible
capital solutions for all types of commercial and industrial
customers. CSG is an affiliate of Beal Bank and Beal Bank USA and
is a direct, one-stop source of capital for up to $600 million per
transaction. For additional information, visit
https://www.csginvestments.com. Beal Bank, based in Plano, Texas,
and Beal Bank USA, based in Las Vegas, Nevada, are part of Beal
Financial Corporation, one of the nation’s largest privately owned
financial institutions. Both banks have a well-earned reputation as
stable, strongly capitalized financial institutions, with combined
total assets in excess of $10 billion as of June 30, 2020. For
additional information, visit https://www.bealbank.com/
About Trafigura
Founded in 1993, Trafigura is one of the largest physical
commodities trading groups in the world. Trafigura sources, stores,
transports and delivers a range of raw materials (including oil and
refined products and metals and minerals) to clients around the
world. The trading business is supported by industrial and
financial assets, including 49.3 percent owned global oil products
storage and distribution company Puma Energy; global terminals,
warehousing and logistics operator Impala Terminals; Trafigura's
Mining Group; and Galena Asset Management. The Company is owned by
over 700 of its 8,000 employees who work in 80 offices in 41
countries around the world. For additional information, visit
https://www.trafigura.com
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. All statements,
other than statements of historical facts, included in this press
release that address activities, events or developments that Kosmos
expects, believes or anticipates will or may occur in the future
are forward-looking statements. Kosmos’ estimates and
forward-looking statements are mainly based on its current
expectations and estimates of future events and trends, which
affect or may affect its businesses and operations. Although Kosmos
believes that these estimates and forward-looking statements are
based upon reasonable assumptions, they are subject to several
risks and uncertainties and are made in light of information
currently available to Kosmos. When used in this press release, the
words “anticipate,” “believe,” “intend,” “expect,” “plan,” “will”
or other similar words are intended to identify forward-looking
statements. Such statements are subject to a number of assumptions,
risks and uncertainties, many of which are beyond the control of
Kosmos, which may cause actual results to differ materially from
those implied or expressed by the forward-looking statements.
Further information on such assumptions, risks and uncertainties is
available in Kosmos’ Securities and Exchange Commission (“SEC”)
filings. Kosmos undertakes no obligation and does not intend to
update or correct these forward-looking statements to reflect
events or circumstances occurring after the date of this press
release, except as required by applicable law. You are cautioned
not to place undue reliance on these forward-looking statements,
which speak only as of the date of this press release. All
forward-looking statements are qualified in their entirety by this
cautionary statement.
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version on businesswire.com: https://www.businesswire.com/news/home/20201004005039/en/
Investor Relations Jamie Buckland +44 (0) 203 954 2831
jbuckland@kosmosenergy.com
Media Relations Thomas Golembeski +1-214-445-9674
tgolembeski@kosmosenergy.com
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