KOSMOS ENERGY Flashcards
What two recent transactions did Slaughter and May advise Kosmos on?
2022
- Advised Kosmos (oil and gas exploration company listed on NYSE and LSE) on the refinancing of its revolving credit facility that provides liquidity to its assets in Ghana, Equatorial Guinea and the Gulf of Mexico
2024
- Advised Kosmos on the refinancing of its reserve-based lending facility that is secured against Kosmos’ production assets in Ghana and Equatorial Guinea
What notable partners worked on the Kosmos deal?
Steven Galbraith
Has more than 30 years experience across over 50 countries in projects, infrastructure developments and M&A
Was named Energy Lawyer of the Year 2023
What is a revolving credit facility?
Flexible form of credit allowing the borrower to draw down, repay and draw down again
Allows a business to borrow when needed.
Variable line of credit because the interest rate can fluctuate in line with credit markets
What is a reserve-based lending facility?
Type of loan sized on the basis of the projected cash flows generated by underlying assets
The facility is repaid using the proceeds from the sale of the underlying assets
The amount of the facility can increase or decrease to reflect the changes in the projected cash flows
What does refinancing involve?
When the borrower attempts to to gain a better position for its liabilities, typically through more favourable interest rates, financing options and access to greater cash
Kosmos -
- In 2022, S&M advised Kosmos on extending its facility’s maturity till 2024 and reducing size of facility - allowing it to get a better interest rate
- In 2024, S&M advised Kosmos on extending its RBL facility until 2029 and increased its size. Furthermore, worked with Kosmos to transfer some banks commitments to the from revolving credit facility to the RBL in anticipation for its maturity
What is maturity?
Refers to the date on which a borrower’s final loan payment is due
