Kosmos Energy talks $300 million six-year convertibles to yield 2.875%-3.375%, up 27.5%-32.5%

By Abigail W. Adams

Portland, Me., March 4 – Kosmos Energy Ltd. plans to price $300 million of six-year convertible notes after the market close on Tuesday with price talk for a coupon of 2.875% to 3.375% and an initial conversion premium of 27.5% to 32.5%, according to a market source.

BofA Securities Inc. and Barclays are bookrunners for the Rule 144A deal, which carries a greenshoe of $45 million.

The notes are non-callable for three years and then subject to a 130% hurdle.

They are putable upon a fundamental change.

In connection with the offering, the company will enter into capped call transactions.

Proceeds will be used to cover the cost of the call spread and repay outstanding debt under its commercial debt facility.

Kosmos Energy is a Dallas-based deep-water oil and gas exploration company.

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