Kosmos Energy refinances reserves-based lending facility

The London-listed firm said the facility, which previously incorporated only the company's Ghana assets, now included the recently-acquired producing assets in Equatorial Guinea, as well as allowing the company the future flexibility to include the Greater Tortue development after its final investment decision.

It said the structure of the RBL included an expansion feature which would allow the facility size to be increased up to an additional $500m in the future, at the company's election.

In addition to the inclusion of new borrowing base assets, Kosmos said the borrowing capacity had been increased to $1.5bn, up from $1.3bn, while the date of maturity was extended by four years to 31 March 2025.

Amortization was extended by four years to 31 March 2022, and commitment fees had also been lowered.

Following the re-financing of the RBL, Kosmos' total available liquidity had now increased to approximately $1.3bn.

“We are pleased to have refinanced our RBL facility, increasing our borrowing capacity through the incorporation of our increased reserves and production,” said Kosmos senior vice president and chief financial officer Thomas P. Chambers.

“The financing, which was oversubscribed, saw strong appetite from both new and existing banks.”

Chambers said that, with the additional RBL capacity and strong liquidity, Kosmos was maintaining its low leverage and “very solid” financial position.

“Proactive management of the company's balance sheet is a key part of the company's strategy and enables us to take advantage of attractive organic and inorganic opportunities and grow the company from a position of strength.”