Chicago, Oct. 13 – Kosmos Energy Ltd. issued $400 million of floating-rate senior bridge notes with a one-year tenor, according to an 8-K filed with the Securities and Exchange Commission.
The notes were issued to Barclays and Standard Chartered Bank.
Interest will be Libor plus 800 basis points, in terms of the annual rate. However, the interest rate will step up 50 bps every three months after the initial issuance.
If the notes have not been fully repaid in a year, they can be exchanged for fixed-rate senior notes that mature June 30, 2027. Interest would be set on the converted notes at 12% per year.
The company can redeem the notes at any time at par.
Any change of control would mean the company would have to offer to buy the notes at par plus interest.
The company expects to refinance the notes with a future debt financing.
On Oct. 13, Kosmos Energy Ghana Holdings completed its acquisition of Anadarko WCTP Co.
The Rule 144A and Regulation S bridge notes and $75 million of borrowings under the company’s commercial debt facility funded the $550.6 million acquisition.
The Dallas-based full-cycle deepwater independent oil and gas exploration and production company has key assets in Ghana, Equatorial Guinea, Mauritania and Senegal, in addition to the U.S. Gulf of Mexico.
| Issuer: | Kosmos Energy Ltd.
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| Issue: | Floating-rate senior notes
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| Amount: | $400 million
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| Maturity: | Oct. 13, 2022
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| Bookrunners: | Barclays and Standard Chartered Bank
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| Trustee: | Wilmington Trust, NA
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| Coupon: | Libor plus 800 bps initial rate; steps up 50 bps every three months
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| Call features: | Any time at par
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| Change of control: | At par
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| Settlement date: | Oct. 13
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| Distribution: | Rule 144A and Regulation S
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| Cusip: | U5007TAC9
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