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Kosmos Energy Lines Up Debt Financing

Kosmos Energy, which is backed by private equity firms the Blackstone Group and Warburg Pincus, is lining up a bank group to secure $2 billion of seven-year debt in advance of its planned initial public offering, Reuters reported. Kosmos Energy is the owner of 23.9% of the Jubilee oil field in Ghana.

(Reuters) – Kosmos Energy, owner of 23.9% of the Jubilee oil field in Ghana, is lining up a bank group to secure US$2bn of 7 year debt in advance of its New York stock exchange IPO. The Blackstone Group and Warburg Pincus [WP.UL] private equity backed company is believed to be appointing Barclays Capital, BNP Paribas, Credit Agricole, HSBC, Societe Generale and Standard Chartered as the banks on the new loan which will replace US$1.15bn of existing facilities. The new loan terms are much better than the existing deal from 2009 with fewer loan covenants and pricing halved to the 250bp to 300bp range. This is a reflection of the improvement in the credit markets and the fact Jubilee is now producing. Kosmos Energy has already appointed Credit Suisse, Citigroup and Barclays Capital on its IPO according to its initial filing in January.