Kosmos Energy closes $100 million three-year multi-currency revolver

By Susanna Moon

Chicago, July 9 - Kosmos Energy Credit International and Kosmos Energy Ltd. obtained a $100 million three-year multi-currency revolving letter-of-credit facility with the option to add up to $50 million more commitments.

The company entered into the credit agreement on July 3 with Societe Generale, London Branch as the original lender, facility agent, security agent and account bank, according to an 8-K filing with the Securities and Exchange Commission.

The company also entered into a charge on cash deposits and account bank agreement on July 3 with Societe Generale, London Branch as security agent.

Kosmos' obligations under the agreement are secured by a first-priority charge over some of its bank accounts held with Societe Generale, London Branch. The terms require the company to maintain cash collateral in those accounts equal to at least 75% of the aggregate face value of all outstanding letters of credit under the facility unless there is a breach of the financial covenants, in which case the required cash collateral amount increases to 100%.

The agreement expires on June 3, 2016.

Interest will be 0.5% per year for amounts outstanding under letters of credit.

Financial covenants require the company and its subsidiaries, on a consolidated basis, to maintain a net debt to EBITDAX ratio of no more than 3.5 times and an EBITDAX to net interest expense ratio of more than 2.25 times.

The agreement also limits the ability of the company and some of its subsidiaries to

• Amalgamate, consolidate, merge, demerge, reconstruct or wind-up;

• Dispose of all or a material part of their assets; or

• Make certain distributions or payments.

Kosmos is an oil and gas exploration and production company based in Hamilton, Bermuda, with an office in Dallas.

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