5th Oct 2020 10:34
(Alliance News) - Kosmos Energy Ltd on Monday announced it has closed a facility in the Gulf of Mexico with Beal Bank USA and Trafigura Trading LLC.
Kosmos is a deepwater exploration and production company with operations in Africa and South America.
Kosmos said it has restructured its Gulf of Mexico prepayment facility, announced in June, into a five-year USD200 million term-loan facility secured against the company's US Gulf of Mexico assets.
In June it was announced that the crude oil prepayment agreement would provide up to USD200 million of crude oil sales with USD150 million committed by Trafigura.
Kosmos said it intended to execute USD50 million of advance crude oil sales in June.
The USD50 million has now been rolled into the new facility structured by CSG Investments Inc, with the remaining USD150 million provided by Beal Bank.
The facility has an interest rate of approximately 6.0%.
It increases Kosmos's borrowing capacity by USD50 million from the initial prepayment agreement, extends the tenor to five years and allows the facility to be expanded up to USD300 million.
Kosmos Chief Financial Officer Neal Shah said: "The closing and syndication of the Gulf of Mexico facility enhances the company's strong liquidity position with access to low-cost, flexible financing."
The company expects its balance sheet to strengthen into 2021.
At September 30, Kosmos had approximately USD650 million of available liquidity.
Kosmos shares were up 2.7% at 81.65 pence each in London on Monday mid-morning.
By Greg Roxburgh; [email protected]
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