S&P gives BB- to Kosmos notes

S&P said it assigned its BB- issue-level rating and 2 recovery rating to the proposed $600 million senior unsecured notes due 2026 that will be issued by Kosmos Energy Ltd. The 2 recovery rating indicates an expectation for substantial (70%-90%; rounded estimate: 80%) recovery to creditors in the event of a payment default.

S&P said it expects the company to use the proceeds from the notes to refinance its 7 7/8% senior secured notes due 2021 ($525 million outstanding), as well as pay down amounts outstanding on its revolving credit facility ($325 million as of Dec. 21, 2018) and fees and expenses.

The B+ issuer credit rating and stable outlook remain unchanged.

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