Kosmos Energy Ltd. said that its unit, Kosmos Energy of Mexico Operations LLC, has agreed to borrow $250 million from Shell Trading (U.S.) Co.
The indicative terms for the senior secured term loan facility had already been agreed upon in early August. The company also said in August that it exited the second quarter of 2025 with approximately $2.85 billion of net debt and available liquidity of approximately $400 million.
Kosmos Energy said in a media release that the funds, structured in two tranches, will be used to repay its outstanding unsecured notes. The first tranche of $150 million will be drawn at the close of the agreement and used to partially redeem Kosmos Energy’s outstanding 2026 unsecured notes ($250 million outstanding).
The second tranche of $100 million under the senior secured term loan facility is available for drawing until April 1, 2026. Kosmos Energy said the loan has an interest rate of SOFR (Secured Overnight Financing Rate) of 3.75 percent. It is secured against Kosmos Energy of Mexico Operations’ assets in the Gulf of America and has a final maturity date of four years after closing.
“We continue to be proactive in improving the resilience of the company’s balance sheet in a volatile commodity price environment by raising new liquidity on attractive terms and addressing near-term maturities”, Neal Shah, Chief Financial Officer, said.
“With production near record high levels and capital at multi-year lows, closing the Term Loan facility complements our near-term goal of organically reducing net debt through free cash flow generation from our high-quality assets while also continuing to grow our strategic relationship with Shell in the Gulf of America”, he said.
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