Kosmos Energy closed a Gulf of Mexico facility with Beal Bank and Trafigura Trading.
Kosmos 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. Beal Bank provided $150 million of the facility, which was structured by CSG Investments, while $50 million advanced under a prepayment agreement announced in June with Trafigura Trading was rolled into the new facility. The facility, which has an interest rate of approximately 6%, increases Kosmos Energy’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,” Neal Shah, CFO of Kosmos Energy, said. “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.”
As of September 30, 2020, following the closing of the Gulf of Mexico facility, Kosmos has approximately $650 million of available liquidity ahead of the conclusion of the fall RBL redetermination, which it expects to conclude shortly.
Kosmos is a deepwater independent oil and gas exploration and production company focused along the Atlantic Margins.
