Kosmos Energy Announces Launch of Public Offering of Common Stock
Kosmos Energy Ltd. (NYSE:KOS) has announced a registered underwritten public offering of 37,500,000 shares of common stock, with an additional 5,625,000 shares available through underwriters' options. The net proceeds will be used to repay borrowings related to the acquisition of Anadarko WCTP Company. Barclays, BofA Securities, and Jefferies are managing the offering, filed under an effective shelf registration statement with the SEC. This offering is aimed at strengthening the company's financial position following its recent acquisition.
- Offering size of 37,500,000 shares plus an option for 5,625,000 additional shares indicates strong market confidence.
- Funds will be used to repay outstanding borrowings, potentially improving financial stability.
- Issuing new shares may lead to shareholder dilution.
- Market reaction could be negative due to the reliance on financing.
Kosmos intends to use the net proceeds from this offering to repay outstanding borrowings under its commercial debt facility, including borrowings incurred to finance a portion of the previously announced acquisition of
Barclays,
The Offering is being made pursuant to an effective shelf registration statement, including a prospectus, filed by Kosmos with the
This press release does not constitute an offer to sell or a solicitation of an offer to buy shares of common stock and shall not constitute an offer, solicitation or sale in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to the registration and qualification under the securities laws of such state or jurisdiction.
About
Kosmos is a full-cycle deepwater independent oil and gas exploration and production company focused along the Atlantic Margins. Our key assets include production offshore
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 (including, but not limited to, the impact of the COVID-19 pandemic), 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’
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