DALLAS--(BUSINESS WIRE)--Kosmos Energy (NYSE: KOS) (LSE: KOS) announced today that it has refinanced its reserve based lending (RBL) facility. The RBL facility, which previously incorporated only the company’s Ghana assets, 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. 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
- Date of maturity has been extended by four years to March 31, 2025
- 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’s 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.”
“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.”
About Kosmos Energy
Kosmos is a leading independent oil and gas exploration and production company focused on frontier and emerging areas along the Atlantic Margin. Our assets include existing production and development projects offshore Ghana and Equatorial Guinea, large discoveries offshore Mauritania and Senegal, as well as exploration licenses with significant hydrocarbon potential offshore Suriname, Sao Tome and Principe, Equatorial Guinea, Morocco and Western Sahara. 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 2016 Corporate Responsibility Report. For additional information, visit www.kosmosenergy.com.
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.