Kosmos Energy Announces
Successful
reserve-Based Lending Facility RE-FINANCING
DALLAS, Texas, April 29, 2024 - Kosmos Energy
(NYSE/LSE: KOS) ("Kosmos" or the
"Company") announced today that it has successfully re-financed its
reserve-based lending ("RBL") facility extending the maturity by
approximately three years, with the RBL facility's final maturity
now in December 2029.
In conjunction with the spring
re-determination, the total RBL facility size has been increased to
$1.35 billion (from $1.25 billion) with current commitments of
approximately $1.2 billion. Discussions with additional potential
lenders are ongoing and are expected to increase commitments later
this year towards the RBL facility size. $800 million is currently
drawn against the RBL facility with the
first amortization payment scheduled for April 1, 2027.
The RBL facility is secured against
the Company's production assets in Ghana and Equatorial Guinea with
the Company's assets in the US Gulf of Mexico and Mauritania &
Senegal remaining unencumbered. The resulting borrowing base
following the spring re-determination significantly exceeds the RBL
facility size. The interest margin payable on the RBL increased
slightly compared to the previous facility, reflecting the current
banking market environment, with the new interest margin on the RBL
facility commencing at 400 basis points above the Secured Overnight
Financing Rate ("SOFR") for the first two years.
As part of the RBL facility
re-financing, the Company has downsized its revolving credit
facility ("RCF") from $250 million to approximately $165 million
with some banks transferring their commitments from the RCF to the
RBL in anticipation of the RCF maturing at the end of
2024.
Neal Shah, Chief Financial Officer,
said "Re-financing the RBL facility is another important step to
optimize Kosmos' capital structure and proactively address our debt
maturities. 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."
About Kosmos Energy
Kosmos is a full-cycle, deepwater,
independent oil and gas exploration and production company focused
along the offshore Atlantic Margins. Our key assets include
production offshore Ghana, Equatorial Guinea and
U.S. Gulf of Mexico, as well as world-class gas projects
offshore Mauritania and Senegal. We also
pursue a proven basin exploration program in Equatorial Guinea and
the U.S. Gulf of Mexico. 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 the
Kosmos Sustainability 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.
Management does not provide a reconciliation for forward
looking non GAAP financial measures where it is unable to provide a
meaningful or accurate calculation or estimation of reconciling
items and the information is not available without unreasonable
effort. This is due to the inherent difficulty of forecasting the
occurrence and the financial impact of various items that have not
yet occurred, are out of our control or cannot be reasonably
predicted. For the same reasons, management is unable to address
the probable significance of the unavailable information. Forward
looking non GAAP financial measures provided without the most
directly comparable GAAP financial measures may vary materially
from the corresponding GAAP financial measures.
###
Source: Kosmos Energy
Ltd.
Investor Relations
Jamie Buckland
+44 (0) 203 954 2831
jbuckland@kosmosenergy.com
Media Relations
Thomas Golembeski
+1-214-445-9674
tgolembeski@kosmosenergy.com