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.
RELATED
Recommended Reading
CERAWeek: NextEra CEO: Growing Power Demand Opportunity for Renewables
2024-03-19 - Natural gas still has a role to play, according to NextEra Energy CEO John Ketchum.
First Solar Gunning for $1B More in 2024 Sales
2024-02-28 - Solar module manufacturer First Solar forecasts 2024 net sales of between $4.4 billion to $4.6 billion, with annual volumes sold ranging from 15.6 gigawatts (GW) to 16.3 GW.
Could Concentrated Solar Power Be an Energy Storage Gamechanger?
2024-03-27 - Vast Energy CEO Craig Wood shares insight on concentrated solar power and its role in energy storage and green fuels.
NextEra Energy Dials Up Solar as Power Demand Grows
2024-04-23 - NextEra’s renewable energy arm added about 2,765 megawatts to its backlog in first-quarter 2024, marking its second-best quarter for renewables — and the best for solar and storage origination.
Energy Transition in Motion (Week of May 10, 2024)
2024-05-10 - Here is a look at some of this week’s renewable energy news, including $1.5 billion in investment commitments for low-carbon energy initiatives.