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Kosmos Energy has refinanced its reserve-based lending (RBL) facility, extending its maturity by three years, according to an April 29 press release.
With final maturity set for December 2029, the RBL facility’s size has been increased by about 8% to $1.35 billion from $1.25 billion, with current commitments of approximately $1.2 billion.
Kosmos said $800 million is currently drawn against the facility with the first amortization payment scheduled for April 1, 2027.
“Re-financing the RBL facility is another important step to optimize Kosmos’ capital structure and proactively address our debt maturities,” said Kosmos’ CFO Neal Shah. “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.”
The RBL facility is secured against the company’s production assets in Ghana and Equatorial Guinea, Kosmos said.
Kosmos said the borrowing base “significantly” exceeds the facility’s size while the interest margin payable on the RBL increased slightly compared to the previous facility.
As part of the refinancing, the company has downsized its revolving credit facility to $165 million from $250 million. The revolver is anticipated to mature at the end of 2024.
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