Kosmos Energy, a deepwater oil and natural gas exploration and production company, has completed an amendment and extension of its $1.2 billion reserve-based lending facility.
The agreement extends the facility’s final maturity from December 2029 to April 2033, providing additional flexibility in the company’s debt maturity schedule and liquidity management.
The amended arrangement maintains total commitments of $1.2 billion, with approximately $750 million drawn at closing.
The financing carries a term of approximately six and a half years, with the overall facility size beginning to amortize after three years.
Based on current borrowings, scheduled repayments would begin in 2031.
The lending arrangement is secured by Kosmos Energy’s production assets in Ghana.
Initial pricing is set at the Secured Overnight Financing Rate (SOFR) plus 4.5% for the first three years, representing a 0.25 percentage-point reduction from the previous margin.
According to the company, the facility was oversubscribed, reflecting continued support from its international banking syndicate.
Many of the participating financial institutions have maintained lending relationships with Kosmos for more than a decade.
The refinancing forms part of Kosmos Energy’s broader efforts to strengthen its balance sheet, improve financial flexibility, and address outstanding debt maturities.
Extending the facility through 2033 provides additional time for the company to manage cash flows and reduce financial leverage.
Kosmos operates offshore oil and natural gas assets in Ghana, Mauritania, Senegal, and the Gulf of America.
The company also maintains development opportunities associated with its exploration activities.
Following the refinancing, management intends to continue focusing on debt reduction, liquidity improvement, and sustainable long-term financial performance.
KEY QUOTE:
“The successful completion of our RBL amendment and extension represents another significant milestone in the execution of our financing strategy. The transaction extends a key source of liquidity out to 2033, improving our maturity profile and further strengthening our financial flexibility. Positive feedback from the market reflects the quality of our asset base and confidence in the future of Kosmos. We are pleased with the strong support received from the banking market and I thank our bank group for their continued support. Following the completion of this transaction, our focus remains on continuing to reduce leverage, enhance liquidity and address our remaining near-term maturities as we position Kosmos for sustainable long-term value creation.”
Neal Shah, Chief Financial Officer Of Kosmos Energy
