Kosmos Energy talks $600 million seven-year notes at 7¼% area yield; pricing possible Thursday

By Paul A. Harris

Portland, Ore., March 21 – Emerging markets-focused Kosmos Energy Ltd. set price talk for its $600 million offering of seven-year senior notes (expected ratings BB-/BB) in the 7¼% area, according to market sources.

Official talk comes wide of initial talk in the 7% area, a trader said.

The deal, which is heard to be playing to a mix of high-yield and emerging markets accounts, could price on Thursday, sources say.

Citigroup Global Markets Inc., SG CIB and Standard Chartered Bank are joint bookrunners for the Rule 144A and Regulation S offering.

The notes come three years of call protection.

The Dallas-based independent oil and gas exploration and production company plans to use the proceeds to redeem all $525 million of its outstanding 7 7/8% senior secured notes due 2021 and to pay down its revolving credit facility.

Kosmos Energy has operations in Ghana, Equatorial Guinea, U.S. Gulf of Mexico, Mauritania, Senegal, Suriname, Ivory Coast, Namibia and elsewhere.

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