Published on 7/25/2014 in the Prospect News Emerging Markets Daily and Prospect News High Yield Daily.
New Issue: EM-focused Kosmos sells $300 million 7 7/8% seven-year notes at par
By Paul A. Harris
Portland, Ore., July 25 – Kosmos Energy Ltd. priced a $300 million issue of seven-year senior secured notes (/CCC+/B) at par to yield 7 7/8% on Friday, according to a syndicate source.
The yield printed on top of final guidance. Earlier yield talk was 8% to 8¼%.
The deal was marketed to both high-yield and emerging markets accounts.
Global coordinator Barclays will bill and deliver. BNP Paribas was also a global coordinator.
BofA Merrill Lynch, HSBC, Credit Agricole CIB, SG CIB, Standard Bank and Standard Chartered Bank are bookrunners.
The oil and gas exploration and production company plans to use the proceeds to repay a portion of its outstanding debt and for general corporate purposes.
Kosmos Energy is based in Hamilton, Bermuda, and has an office in Dallas. It has operations in Ghana, Ireland, Mauritania, Morocco and Suriname.
| Issuer: | Kosmos Energy Ltd.
|
| Amount: | $300 million
|
| Maturity: | Aug. 1, 2021
|
| Securities: | Senior secured notes
|
| Global coordinators: | Barclays (bill and deliver), BNP Paribas
|
| Joint bookrunners: | BofA Merrill Lynch, Credit Agricole CIB, HSBC, SG CIB, Standard Bank, Standard Chartered Bank
|
| Co-managers: | Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, ING, MUFG, Natixis, Nedbank Capital
|
| Coupon: | 7 7/8%
|
| Price: | Par
|
| Yield: | 7 7/8%
|
| Spread: | 572 bps
|
| First call: | Aug. 1, 2017 at 103.938
|
| Equity clawback: | 35% at 107.875 until to Aug. 1, 2017
|
| Change-of-control put: | 101%
|
| Trade date: | July 25
|
| Settlement date: | Aug. 1
|
| Ratings: | Standard & Poor's: CCC+
|
| Fitch: B
|
| Distribution: | Rule 144A and Regulation S for life
|
| Final guidance: | 7 7/8%, earlier price talk was 8% to 8¼%
|
| Marketing: | Roadshow
|
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