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Kosmos Energy has announced the successful re-financing of its reserve-based lending facility, extending the maturity by approximately three years, with the final maturity now in December 2029. The total RBL facility size has been increased to $1.35 billion, with current commitments of approximately $1.2 billion. Discussions with additional potential lenders are ongoing, with $800 million currently drawn against the RBL facility and 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 interest margin payable on the RBL increasing slightly compared to the previous facility, reflecting the current banking market environment. The company has downsized its revolving credit facility from $250 million to approximately $165 million as part of the RBL facility re-financing. Neal Shah, Chief Financial Officer, stated that the re-financing is an important step in optimizing Kosmos' capital structure and proactively addressing debt maturities, with no maturities until 2026 and lower interest expense going forward.
Kosmos Energy ha annunciato il successo nel rifinanziamento del suo impianto di prestito basato sulle riserve, estendendo la scadenza di circa tre anni, fino a dicembre 2029. La dimensione totale dell'impianto RBL è stata aumentata a 1,35 miliardi di dollari, con impegni attuali di circa 1,2 miliardi di dollari. Sono in corso discussioni con ulteriori potenziali prestatori, con 800 milioni di dollari già utilizzati dell'impianto RBL e il primo pagamento di ammortamento previsto per il 1° aprile 2027. L'impianto RBL è garantito dagli asset di produzione della società in Ghana e Guinea Equatoriale, con un leggero aumento del margine di interesse rispetto al precedente impianto, riflettendo l'attuale ambiente di mercato bancario. La società ha ridotto la sua linea di credito rotativo da 250 milioni di dollari a circa 165 milioni di dollari come parte del rifinanziamento dell'impianto RBL. Neal Shah, direttore finanziario, ha affermato che il rifinanziamento rappresenta un passo importante nell'ottimizzazione della struttura di capitale di Kosmos e nel gestire proattivamente le scadenze del debito, senza scadenze fino al 2026 e con una riduzione delle spese per interessi in futuro.
Kosmos Energy ha anunciado la exitosa refinanciación de su facilidad de préstamo basada en reservas, extendiendo su vencimiento por aproximadamente tres años, hasta diciembre de 2029. El tamaño total de la facilidad RBL se ha incrementado a 1.35 mil millones de dólares, con compromisos actuales de aproximadamente 1.2 mil millones de dólares. Continúan las conversaciones con potenciales prestamistas adicionales, con 800 millones de dólares ya dispuestos contra la facilidad RBL y el primer pago de amortización programado para el 1 de abril de 2027. La facilidad RBL está asegurada con los activos de producción de la empresa en Ghana y Guinea Ecuatorial, con un ligero aumento en el margen de interés pagadero sobre la RBL en comparación con la facilidad anterior, reflejando el entorno actual del mercado bancario. La empresa ha reducido su facilidad de crédito revolvente de 250 millones de dólares a aproximadamente 165 millones de dólares como parte de la refinanciación de la RBL. Neal Shah, Director Financiero, afirmó que la refinanciación es un paso importante en la optimización de la estructura de capital de Kosmos y en abordar proactivamente los vencimientos de deuda, sin vencimientos hasta 2026 y con menores gastos de intereses en adelante.
코스모스 에너지는 그들의 예비 기반 대출 시설의 성공적인 재정비를 발표했으며, 만기를 약 세 년 연장하여 최종 만기는 2029년 12월로 설정했습니다. RBL 시설의 총 규모는 13억 5천만 달러로 증가했으며, 현재 약 12억 달러의 약정이 있습니다. 추가 잠재적 대출자들과의 협상이 진행 중이며, 현재 RBL 시설에 대해 8억 달러가 사용되었고, 첫 상환 지급은 2027년 4월 1일로 예정되어 있습니다. RBL 시설은 가나와 적도 기니에 있는 회사의 생산 자산에 대해 담보가 설정되어 있으며, 이전 시설에 비해 금리 마진이 약간 상승했습니다. 이는 현재의 은행 시장 환경을 반영한 것입니다. 회사는 RBL 시설의 재정비의 일환으로 2억 5천만 달러에서 1억 6천 5백만 달러 정도로 회전 신용 한도를 축소표했습니다. 닐 샤, 재무이사는 재정비가 코스모스의 자본 구조를 최적화하고 채무 만기를 사전에 다루는 데 있어 중요한 단계라고 언급하며, 2026년까지 만기가 없고 향후 이자 비용이 감소할 것임을 밝혔습니다.
Kosmos Energy a annoncé le refinancement réussi de sa facilité de crédit basée sur les réserves, prolongeant l'échéance d'environ trois ans, avec une maturité finale en décembre 2029. La taille totale de la facilité RBL a été augmentée à 1,35 milliard de dollars, avec des engagements actuels d'environ 1,2 milliard de dollars. Des discussions avec des prêteurs potentiels supplémentaires sont en cours, avec 800 millions de dollars actuellement tirés sur la facilité RBL et le premier paiement d'amortissement prévu pour le 1er avril 2027. La facilité RBL est sécurisée par les actifs de production de l'entreprise au Ghana et en Guinée équatoriale, avec une légère augmentation de la marge d'intérêt payable sur la RBL par rapport à la facilité précédente, reflétant l'environnement actuel du marché bancaire. L'entreprise a réduit sa facilité de crédit renouvelable de 250 millions de dollars à environ 165 millions de dollars dans le cadre du refinancement de la facilité RBL. Neal Shah, directeur financier, a déclaré que le refinancement est une étape importante dans l'optimisation de la structure du capital de Kosmos et dans l'adresse proactive des échéances de la dette, sans échéances jusqu'en 2026 et avec des dépenses d'intérêt inférieures à l'avenir.
Kosmos Energy hat die erfolgreiche Refinanzierung seiner reservebasierten Kreditfazilität bekannt gegeben und die Laufzeit um etwa drei Jahre verlängert, mit einer Endfälligkeit im Dezember 2029. Die Gesamtgröße der RBL-Fazilität wurde auf 1,35 Milliarden Dollar erhöht, mit aktuellen Zusagen von etwa 1,2 Milliarden Dollar. Gespräche mit zusätzlichen potenziellen Kreditgebern sind im Gange, wobei derzeit 800 Millionen Dollar gegen die RBL-Fazilität gezogen wurden und die erste Tilgungszahlung für den 1. April 2027 angesetzt ist. Die RBL-Fazilität ist durch die Produktionsanlagen des Unternehmens in Ghana und Äquatorialguinea abgesichert, wobei die Zinsmarge auf die RBL leicht im Vergleich zur vorherigen Fazilität gestiegen ist, was die derzeitige Bankenmarktlage widerspiegelt. Das Unternehmen hat seine revolvierende Kreditfazilität im Rahmen der Refinanzierung der RBL-Fazilität von 250 Millionen Dollar auf etwa 165 Millionen Dollar reduziert. Neal Shah, Chief Financial Officer, erklärte, dass die Refinanzierung ein wichtiger Schritt zur Optimierung der Kapitalstruktur von Kosmos und zur proaktiven Bewältigung von Schuldenfälligkeiten ist, ohne Fälligkeiten bis 2026 und mit niedrigeren Zinskosten in der Zukunft.
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Insights
The re-financing of Kosmos Energy's reserve-based lending facility is a strategic financial move that extends the maturity of the company's debt and increases the total facility size, indicating a degree of confidence from the lenders. The extension defers principal payments until 2027, which provides Kosmos with a more manageable debt profile in the short term. However, the cost of borrowing has increased slightly, as indicated by the new interest margin. This elevation in borrowing costs reflects broader banking market conditions and could marginally impact the company's financial expenses. The downsizing of the revolving credit facility in favor of the RBL suggests a shift in the company's debt strategy, likely aiming for a more stable long-term capital structure. From an investor's perspective, the lack of immediate debt maturities can be seen as positive, as it may reduce the risk of financial strain in the short run. However, the increased commitment amounts and the ongoing discussions to further increase commitments must be monitored as they could signify a rise in debt levels, affecting the company's leverage and future financial flexibility.
The security of Kosmos Energy's RBL facility by its production assets in Ghana and Equatorial Guinea, with other assets remaining unencumbered, speaks to strategic asset management. By specifically leveraging Ghanaian and Equatorial Guinean assets, Kosmos retains flexibility with its assets in the US Gulf of Mexico and Mauritania & Senegal. This could allow for diversified investment and operational strategies in those regions. From a sector standpoint, the ability to secure a substantial credit facility with a borrowing base that exceeds the facility size signals strong underlying asset value and lender confidence in the company's reserves. The oil and gas sector often utilizes RBL facilities due to their direct correlation with the value of the company's reserves, which can fluctuate with commodity prices. The arrangement suggests that Kosmos has been able to demonstrate the quality and profitability of its reserves to its banking partners, a potentially reassuring signal to investors regarding the company's asset base.
Evaluating Kosmos Energy's credit profile, the re-financing of the RBL facility and the increase in total facility size could be interpreted as a proactive measure to manage debt maturities and improve liquidity. The shift of commitments from the revolving credit facility to the RBL suggests a concerted effort to streamline the company’s debt instruments. It's essential to consider the effect this refinancing could have on the company's creditworthiness. The increase in the interest margin, albeit slight, may affect cost of capital over time. Additionally, the company's decision to engage with potential additional lenders to further increase commitments could lead to elevated debt levels, which must be carefully balanced against cash flow generation from their operations. A important factor for credit analysis will be Kosmos' ability to sustain production levels and manage operating costs, especially in the face of volatile oil prices. Investors should pay close attention to the company’s future earnings and cash flow statements to assess the ongoing serviceability of this larger debt load.
DALLAS--(BUSINESS WIRE)--
Kosmos Energy (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.
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.
