Kosmos Energy to drive by with $225 million 7 7/8% notes due 2021 in non-fungible add-on deal

By Paul A. Harris

Portland, Ore., April 7 – Kosmos Energy Ltd. plans to price a $225 million offering of 7 7/8% senior secured notes due Aug. 1, 2021 (existing ratings CCC+/B) on Tuesday trailing a late-morning conference call with investors, according to a syndicate source.

The notes will have a structure mirroring that of the company’s existing 7 7/8% notes due 2021 but will be a separate issue, not fungible with those existing notes.

Global coordinator Barclays will bill and deliver for the Rule 144A and Regulation S for life deal. BNP Paribas, BofA Merrill Lynch, Credit Agricole CIB, Credit Suisse Securities (USA) LLC, HSBC, SG CIB, Standard Bank and Standard Chartered are the joint bookrunners.

The notes become callable on Aug. 1, 2017 at 103.938 and feature a 101% poison put, the same as the existing 7 7/8% notes.

The oil and gas exploration and development company plans to use the proceeds to pay down its reserve-based facility and for general corporate purposes.

Kosmos Energy, which is based in Hamilton, Bermuda, and has an office in Dallas, operates in West Africa and on the Atlantic Margin.

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