KOSMOS ENERGY LTD. (NYSE:KOS) Files An 8-K Entry into a Material Definitive Agreement

ME Staff 8-k
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KOSMOS ENERGY LTD. (NYSE:KOS) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01 Entry into a Material Definitive Agreement

On February5, 2018, Kosmos Energy Ltd. (the “Company”) amended and restated its existing commercial debt facility (under which the Company’s indirect subsidiaries, Kosmos Energy Finance International, Kosmos Energy Senegal and Kosmos Energy Mauritania, are the borrowers) by entering an amended and restated facility agreement (the “A&R RBL”), and certain ancillary documents. The A&R RBL will be effective upon satisfaction of customary conditions.

The A&R RBL makes certain amendments to the terms of the existing amended and restated commercial debt facility, subject to certain conditions and exceptions, including without limitation:

· the inclusion of the Company’s recently acquired producing assets in Equatorial Guinea in the calculation of borrowing base amounts as well as the Company’s option to include the Greater Tortue development in the future following final investment decision, up to $500 million in the aggregate; and

· the addition of Kosmos Energy Finance International, Kosmos Energy Investments Senegal Limited, Kosmos Energy Equatorial Guinea, Kosmos Energy Senegal and Kosmos Energy Mauritania as additional guarantors and pledged subsidiaries.

As a result of these amendments, (i)total availability under the A&R RBL has been increased from $1.3 billion to $1.5 billion as of the date of effectiveness and (ii)the Company has the option, subject to certain conditions and exceptions, to increase total available commitments up to an additional $500 million.

The Company expects to incur approximately $25 million in fees and expenses associated with entering into the A&R RBL, which such fees and expenses are expected to be amortized over the term of the A&R RBL.

The A&R RBL contains other customary representations and warranties, covenants and informational undertakings, in each case, subject to certain exceptions and conditions. The A&R RBL also provides for certain customary events of default, including, among other things, payment defaults, breach of representations and warranties, covenant defaults, cross-defaults to certain indebtedness, certain events of insolvency, judgment defaults, and repudiation or rescission of certain documents supporting the A&R RBL. If such an event of default occurs, the agents under such A&R RBL are entitled to take various actions, including the cancellation of any outstanding commitments, acceleration of amounts due thereunder and taking certain permitted enforcement actions under the ancillary security documents, subject in each case to the terms of the A&R RBL and such security documents.

Item 1.01 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant

The disclosure required by this item is included in Item 1.01 above and is incorporated herein by reference.


About KOSMOS ENERGY LTD. (NYSE:KOS)

Kosmos Energy Ltd. (Kosmos) is a holding company. The Company is an independent oil and gas exploration and production company focused on frontier and emerging areas along the Atlantic Margin. The Company operates in the exploration and production of oil and natural gas segment. The Company’s assets include existing production and development projects offshore Ghana, large discoveries offshore Mauritania and Senegal, as well as exploration licenses with hydrocarbon potential offshore Portugal, Sao Tome and Principe, Suriname, Morocco and Western Sahara. The Company has operations in Africa, Europe and South America. Its discoveries in Ghana include Jubilee Field, TEN, Mahogany, Teak, Akasa and Wawa. The Company’s other discoveries in Mauritania include Ahmeyim and Marsouin, and Senegal include Guembeul. The Company’s West Cape Three Points (WCTP) Block and Deepwater Tano (DT) Block are located within the Tano Basin, offshore Ghana.