Kosmos Energy Boosts Financial Flexibility with Extended and Expanded $1.35B Loan Facility
Portfolio Pulse from Benzinga Newsdesk
Kosmos Energy (NYSE/LSE: KOS) has re-financed its reserve-based lending facility, extending its maturity to December 2029 and increasing its size to $1.35 billion from $1.25 billion. The facility, secured against assets in Ghana and Equatorial Guinea, has $800 million currently drawn, with the first payment due in April 2027. The interest margin has slightly increased, starting at 400 basis points above SOFR. Additionally, Kosmos downsized its revolving credit facility from $250 million to $165 million.
April 29, 2024 | 7:09 am
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Kosmos Energy has successfully re-financed its RBL facility, extending maturity to 2029 and increasing its size, with a slight increase in interest margin.
The successful re-financing and expansion of the RBL facility by Kosmos Energy indicates a strong financial position and improved liquidity, which is likely to be viewed positively by investors. The extension of the maturity date and the increase in facility size provide the company with greater financial flexibility. However, the slight increase in the interest margin reflects the current banking market conditions and could impact future interest expenses.
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