1 July 2016material agreement▼ Bad
Kosmos's letter-of-credit facility with Societe Generale was cut from $150 million to $125 million and its cost raised -- tighter, pricier credit terms as the oil-price downturn dragged into its second year.
Announcements, explained
Each one in plain English, with the numbers worked through for a shareholder.
1 Oct 2015material agreement▲ Good
Kosmos agreed Amendment No. 6 to its Atwood drillship contract, extending it one year to November 12, 2018 and cutting the day rate to about $495,000. Kosmos can revert to the original rate and end date before October 1, 2016 by making a rate recovery payment.
11 June 2015material agreement▲ Good
Kosmos expanded its revolving credit facility from $300 million to $400 million and extended its maturity three years to November 2018, giving it more headroom during the oil-price downturn.
10 Apr 2015debt financing▼ BadMajor
With oil prices sliding, Kosmos tapped an additional $225 million of its 7.875% notes, taking total notes outstanding to $525 million -- added debt taken on to shore up liquidity through the downturn.
10 Oct 2014material agreement● Neutral
Funds affiliated with Blackstone and Warburg Pincus agreed to sell 15 million Kosmos common shares to underwriter Citigroup, with an option for 2.25 million more to cover over-allotments. Kosmos received no proceeds.
4 Aug 2014debt financing● NeutralMajor
Kosmos raised $300 million in new 7.875% senior secured notes due 2021, adding a bond alongside its bank facilities, secured by a pledge of its main operating subsidiary's shares.
15 July 2014material agreement● Neutral
Warburg Pincus and Blackstone sold another 19.55 million shares to the public, continuing their post-IPO exit; Kosmos again receives none of the proceeds.
20 Mar 2014debt financing▲ GoodMajor
Kosmos refinanced its main bank facilities, raising total borrowing capacity from $1.2 billion to $1.5 billion and extending maturity to 2021, while setting a conservative $70/barrel oil-price floor for calculating how much it can borrow against reserves.
9 July 2013debt financing● Neutral
Kosmos and its subsidiary Kosmos Energy Credit International signed a multi-currency revolving letter of credit facility with Societe Generale, London Branch, sized at $100 million and expandable by up to $50 million. It runs to June 2016, is guaranteed by Kosmos and requires cash collateral of at least 75% of letters of credit issued.
11 June 2013material agreement● NeutralMajor
Kosmos locked in a new deepwater drillship from Atwood Oceanics for an initial 3-year term at roughly $595,000/day starting mid-2014, securing the rig capacity it needs to keep exploring offshore West Africa.
21 Feb 2013material agreement● Neutral
The February secondary offering by Warburg Pincus and Blackstone closed, with underwriters also able to buy an extra 4.5 million shares; two Blackstone-affiliated directors remain on Kosmos's board even as the firm trims its stake.
15 Feb 2013material agreement● Neutral
Warburg Pincus, Blackstone and certain Kosmos officers agreed to sell 30 million shares at $11.00 each in a secondary offering, with Kosmos receiving no proceeds. Kosmos also amended its registration rights agreement to cut the notice period for registrations to one day.
31 Jan 2013financial restatement● Neutral
Kosmos corrected how it presented per-share earnings in its 2011 10-K and a 2012 10-Q after an audit-committee review found errors, but the fix only changes the reported earnings-per-share figures -- total net income, cash flow and the balance sheet are unaffected.