Kosmos closes $200m facility secured against US Gulf of Mexico assets

5 October 2020 (Last Updated October 12th, 2020 16:41)

Independent oil and gas exploration and production(E&P) company Kosmos Energy has announced it has closed a facility in the US Gulf of Mexico (GoM) with Beal Bank USA and Trafigura Trading.

Kosmos closes $200m facility secured against US Gulf of Mexico assets
The facility has an interest rate of approximately 6%. Credit: Stephen Marrable / Pixabay.

Independent oil and gas exploration and production(E&P) company Kosmos Energy has announced it has closed a facility in the US Gulf of Mexico (GoM) with Beal Bank USA and Trafigura Trading.

Kosmos noted that it has restructured the GoM prepayment facility announced in June into a five-year $200m term-loan facility secured against the company’s Gulf of Mexico assets.

According to Kosmos, the $50m advance under the prepayment agreement with Trafigura has now been rolled into the new facility structured by CSG Investments with the remaining $150m provided by Beal Bank USA.

The facility has an interest rate of approximately 6%.

It increases the company’s borrowing capacity by $50m from the initial prepayment agreement and extends the tenor to five years.

Kosmos Energy 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.

“Along with free cash generated by our low-cost production assets and proceeds of the recent Shell transaction expected this quarter, the company’s balance sheet is expected to strengthen into 2021.”

As of 30 September, Kosmos had approximately $650m of available liquidity.

Kosmos Energy is a deepwater E&P company with operations in Africa and South America.