Kosmos Energy Successfully Completes Reserve Based Lending Facility Amendment and Extension
May 10 2021 - 1:57AM
Business Wire
Transaction clears all material near-term debt
maturities
Kosmos Energy (NYSE/LSE: KOS) (“Kosmos” or the “Company”)
announced today that it has successfully completed the amendment
and extension of its reserve based lending (“RBL”) facility.
As part of the amendment, Kosmos elected to lower the overall
facility size from $1.5 billion to $1.25 billion to reduce reliance
on the RBL facility and commitment costs following the successful
completion of the Company’s senior notes issuance in February 2021.
The amendment includes a two-year tenor extension, with the RBL
facility’s final maturity now in March 2027.
In conjunction with the spring re-determination, the Company’s
lending syndicate approved a borrowing base capacity of $1.24
billion with current outstanding borrowings of $1.0 billion. The
slight reduction in borrowing capacity includes the impact of a
lower long-term oil price deck, agreed in March 2021 with the bank
syndicate. Total commitments as of May 7, 2021 were $1.21 billion,
with the Company expecting to increase total commitments to $1.25
billion in the second quarter of 2021 as additional lenders
complete their final credit approval process. The margin increased
by 50 basis points compared to the previous facility, reflecting
the current banking market environment, with a margin of LIBOR +375
basis points within the first three years of the amended RBL
facility.
In line with the Company’s focus on sustainability, the
amendment includes a mechanism for two environmental, social and
governance (“ESG”) key performance indicators (“KPIs”) to impact
the margin based upon delivering emissions targets and achieving
certain third party ESG ratings. The KPIs are expected to be agreed
upon at the September 2021 redetermination.
The RBL facility is secured against the Company’s production
assets in Ghana and Equatorial Guinea with the first amortization
payment scheduled for March 2024. Kosmos’ gas assets in Mauritania
and Senegal remain unencumbered.
“We are pleased to have successfully completed this RBL
amendment and extension, and we thank our bank group for its
continued support. Following the recent senior notes offering,
Kosmos has increased liquidity and cleared any material debt
maturities until late 2024. For the first time, we are
incorporating ESG KPIs into our RBL framework, which will offer an
economic incentive to maintain and further improve our strong ESG
credentials. With two important financing transactions completed so
far in 2021, the Company is well positioned to meet its strategic
and financial objectives for the year,” said Neal Shah, Chief
Financial Officer.
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.
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/20210509005035/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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