Kosmos Power Ltd. mentioned that its unit, Kosmos Power of Mexico Operations LLC, has agreed to borrow $250 million from Shell Buying and selling (U.S.) Co.
The indicative phrases for the senior secured time period mortgage facility had already been agreed upon in early August. The corporate additionally mentioned in August that it exited the second quarter of 2025 with roughly $2.85 billion of internet debt and accessible liquidity of roughly $400 million.
Kosmos Power mentioned in a media launch that the funds, structured in two tranches, will probably be used to repay its excellent unsecured notes. The primary tranche of $150 million will probably be drawn on the shut of the settlement and used to partially redeem Kosmos Power’s excellent 2026 unsecured notes ($250 million excellent).
- Advertisement -
The second tranche of $100 million beneath the senior secured time period mortgage facility is out there for drawing till April 1, 2026. Kosmos Power mentioned the mortgage has an rate of interest of SOFR (Secured In a single day Financing Fee) of three.75 %. It’s secured in opposition to Kosmos Power of Mexico Operations’ belongings within the Gulf of America and has a last maturity date of 4 years after closing.
“We proceed to be proactive in enhancing the resilience of the corporate’s stability sheet in a risky commodity value surroundings by elevating new liquidity on enticing phrases and addressing near-term maturities”, Neal Shah, Chief Monetary Officer, mentioned.
“With manufacturing close to document excessive ranges and capital at multi-year lows, closing the Time period Mortgage facility enhances our near-term aim of organically lowering internet debt by way of free money movement era from our high-quality belongings whereas additionally persevering with to develop our strategic relationship with Shell within the Gulf of America”, he mentioned.
To contact the writer, electronic mail andreson.n.paul@gmail.com
Generated by readers, the feedback included herein don’t replicate the views and opinions of Rigzone. All feedback are topic to editorial overview. Off-topic, inappropriate or insulting feedback will probably be eliminated.
