Fitch rates Kosmos notes B-

Fitch Ratings said it gave Kosmos Energy Ltd.’s upcoming $400 million of senior unsecured notes an expected rating of B-. The recovery rating is RR5.

“The recovery rating of RR5 for the expected senior unsecured notes is driven by Kosmos’ (B/rating watch negative (RWN)) increased debt post-issue. If the planned bond issue is successful, we are likely to downgrade the senior unsecured rating for the existing bonds (B/RWN) to reflect RR5 based on an expected higher debt level,” the agency said in a press release.

The new notes will benefit from the same guaranty package from operating subsidiaries in the Gulf of Mexico as Kosmos’ $750 million of 7 1/8% senior unsecured notes due in 2026.

Proceeds will be used for debt repayment and general corporate purposes.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.