Kosmos Energy has amended and extended its commercial reserve-based lending facility, pushing its final maturity to April 1, 2033. The revised terms also delay scheduled principal repayments until 2029 and add a minimum-liquidity requirement.
The facility’s committed size is now $1.2 billion. Kosmos may be able to increase available commitments by up to $550 million, bringing the total to $1.75 billion, subject to conditions.
Key details
- Later repayments: Principal amortization is scheduled to begin on October 1, 2029, with equal payments every six months through the facility’s April 1, 2033 maturity.
- Interest margin: The applicable margin is 4.50% for the first three years, with increases during the amortization period. The announcement does not specify those later margins.
- Liquidity covenant: Beginning March 31, 2027, Kosmos must maintain at least $200 million of liquidity, tested twice a year.
- Reserve account: The changes effectively remove the debt-service reserve account requirement.
- Transaction costs: Kosmos expects to incur about $20 million in fees and expenses—roughly 1.7% of total commitments—and amortize those costs over the facility’s term.
What changes for investors
The revised schedule postpones required principal reductions until October 2029, while extending the time available to repay the facility. In return, Kosmos faces a new minimum-liquidity test, and the interest margin is set to rise during the repayment period. The $1.2 billion commitment is the current facility size; the additional $550 million is an option subject to conditions, not part of current commitments.