Kosmos Energy increases borrowing capacity to $1.5 bln

U.S. oil and gas explorer Kosmos Energy has refinanced the loan facility tied to its reserves, increasing the borrowing capacity to $1.5 billion.

Kosmos said on Tuesday it has refinanced its reserves based lending (RBL) facility, which previously incorporated only the company’s Ghana assets.

It now includes the recently acquired producing assets in Equatorial Guinea as well as allowing the company the future flexibility to include the Greater Tortue development post final investment decision.

To remind, U.S. oil company Hess last October agreed to sell its interests in assets offshore Equatorial Guinea to Kosmos Energy and Trident Energy for a total consideration of $650 million. The deal was closed in late November 2017.

According to Kosmos, the structure of the RBL includes an expansion feature which allows the facility size to be increased up to an additional $500 million in the future, at the company’s election.

In addition to the inclusion of new borrowing base assets, through the refinancing, the borrowing capacity has been increased to $1.5 billion, up from $1.3 billion, and date of maturity has been extended by four years to March 31, 2025. In addition, amortization has been extended by four years to March 31, 2022, and commitment fees have been lowered.

Following the re-financing of the RBL, Kosmos’ total available liquidity increases to approximately $1.3 billion.

Thomas P. Chambers, senior vice president and chief financial officer, said: “We are pleased to have refinanced our RBL facility, increasing our borrowing capacity through the incorporation of our increased reserves and production. The financing, which was oversubscribed, saw strong appetite from both new and existing banks.”

Chambers added: “With the additional RBL capacity and strong liquidity, Kosmos maintains its low leverage and very solid financial position. Proactive management of the company’s balance sheet is a key part of the company’s strategy and enables us to take advantage of attractive organic and inorganic opportunities and grow the company from a position of strength.”

Share this article

Follow Offshore Energy Today

Events>

<< May 2018 >>
MTWTFSS
30 1 2 3 4 5 6
7 8 9 10 11 12 13
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29 30 31 1 2 3

2nd AFRICA OIL & GAS LOCAL CONTENT CONFERENCE AND EXHIBITION

The 2018 programme has been created around the outcomes and recommendations of the previous, highly successful event, and will focus…

read more >

25th Anniversary International Caspian Oil & Gas Conference

In 2018, the largest oil and gas event in the Caspian Region – the Caspian Oil & Gas Exhibition and Conference Incorporating Refining…

read more >

7th Oil and Gas Kenya 2018 Products & Eqpt. Exhibition in Africa

The 07th Oil & Gas Africa – Int’l Trade Exhibition, 29 – 31 May, 2018, is a hub for key players in the oil and gas…

read more >

FPSO Brazil Congress 2018

This is the first and only conference dedicated to the entire lifecycle of the Brazilian FPSO industry…

read more >

Jobs>

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply