Kosmos Energy successfully completes modification and extension of reserve-based loan facility

DALLAS – (BUSINESS WIRE) – Kosmos Energy (NYSE / LSE: KOS) (“Kosmos” or the “Company”) today announced that it has completed the amendment and extension of its reserve-based loan facility ( “RBL”).

As part of the amendment, Kosmos elected to reduce the overall size of the facility from $ 1.5 billion to $ 1.25 billion in order to reduce the reliance on the RBL facility and the costs of ‘commitment after the successful completion of the issuance of the company’s senior notes in February 2021. The amendment includes two – one-year term extension, with the final maturity of the RBL facility in March 2027.

Along with the spring review, the company’s lender syndicate approved a base borrowing capacity of $ 1.24 billion with outstanding borrowings of $ 1.0 billion. The slight reduction in borrowing capacity includes the impact of a long-term decline in oil prices, agreed in March 2021 with the banking union. Total commitments as of May 7, 2021 stood at $ 1.21 billion, with the company planning to increase its total commitments to $ 1.25 billion in the second quarter of 2021, as other lenders complete their process. final credit approval. The margin increased by 50 basis points from the previous facility, reflecting the current banking market environment, with a margin of LIBOR +375 basis points in the first three years of the modified RBL facility.

In line with the Company’s focus on sustainable development, the amendment includes a mechanism allowing two environmental, social and governance (“ESG”) key performance indicators (“KPIs”) to have an impact on margin based on emissions targets and the achievement of certain third-party ESG ratings. . KPIs are expected to be agreed upon in the September 2021 re-determination.

The RBL plant is guaranteed against the company’s production assets in Ghana and Equatorial Guinea, with the first amortization payment scheduled for March 2024. Kosmos’ gas assets in Mauritania and Senegal are unencumbered.

“We are pleased to have completed this RBL amendment and extension, and thank our banking group for their continued support. Following the recent senior note offering, Kosmos has increased its liquidity and settled all major debt maturities through the end of 2024. For the first time, we are integrating ESG KPIs into our RBL framework, which will provide an economic incentive to maintain and further improve our strong ESG. credits. With two major financing transactions completed to date in 2021, the company is well positioned to meet its strategic and financial goals for the year, ”said Neal Shah, Chief Financial Officer.

About Kosmos Energy

Kosmos is an independent, full-cycle deepwater oil and gas exploration and production company specializing along the Atlantic margins. Our main assets include production off Ghana, Equatorial Guinea and the Gulf of Mexico in the United States, as well as world-class gas development off Mauritania and Senegal. Kosmos is listed on the New York Stock Exchange and the London Stock Exchange and trades under the ticker symbol KOS. As an ethical and transparent company, Kosmos is committed to doing things the right way. The company’s business principles express our commitment to transparency, ethics, human rights, safety and the environment. Learn more about this commitment in our corporate responsibility report. For more information, visit www.kosmosenergy.com.

Forward-looking statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical fact, included in this press release which deal with activities, events or developments that Kosmos expects, believes or anticipates will occur or may occur in the future are forward-looking statements. Kosmos’ estimates and forward-looking statements are primarily based on its current expectations and estimates of future events and trends, which affect or may affect its business and operations. Although Kosmos believes that these estimates and forward-looking statements are based on reasonable assumptions, they are subject to several risks and uncertainties and are made in light of information currently available to Kosmos. When used in this press release, the words “anticipate”, “believe”, “intend”, “expect”, “plan”, “want” or other similar words are intended to identify forward-looking statements. Such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of Kosmos, which may cause actual results to differ materially from those implied or expressed in the statements. prospective. Further information on these assumptions, risks and uncertainties can be found in the documents filed by the Securities and Exchange Commission (“SEC”) of Kosmos. Kosmos assumes no obligation and does not intend to update or correct these forward-looking statements to reflect events or circumstances occurring after the date of this press release, except as required by applicable law. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. All forward-looking statements are qualified in their entirety by this cautionary statement.