REG - Kosmos Energy Ltd - Reserve-Based Lending Facility Refinancing

Kosmos EnergyAnnouncement

29/04/2024 07:00

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RNS Number : 2994M  Kosmos Energy Limited  29 April 2024

Kosmos Energy Announces Successful

reserve-Based Lending Facility RE-FINANCING

 

DALLAS, Texas, April 29, 2024 - Kosmos Energy (http://www.kosmosenergy.com/)
(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
(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.kosmosenergy.com&esheet=52122168&newsitemid=20191103005040&lan=en-US&anchor=www.kosmosenergy.com&index=2&md5=2a5f6a50bbb6fbc7e7ea23825f104710)
.

 

 

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

 

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