Kosmos Energy Strengthens Liquidity Position With Closing of $200 Million Gulf of Mexico Facility

escveritas
Site Admin
Posts: 3181
Joined: Sat Aug 29, 2020 5:40 am
Location: Singapore
Contact:
Singapore

Kosmos Energy Strengthens Liquidity Position With Closing of $200 Million Gulf of Mexico Facility

Unread post by escveritas »

DALLAS--(BUSINESS WIRE)--Oct. 5, 2020-- 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.
Post Reply

Return to “Market News”

Who is online

Users browsing this forum: No registered users and 5 guests