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 renegotiated its Atwood drillship contract, extending it a year to November 2018 in exchange for a lower day rate (about $495,000, down from $595,000) -- a concession reflecting the industry-wide rig glut during the 2015 oil price crash.
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
The sponsors sold a further 15 million shares (plus a 2.25 million-share over-allotment) to the public in a third secondary offering within two years.
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 arranged a new letter-of-credit facility (up to $150 million) with Societe Generale to back its West African operations, adding a dedicated LC line alongside its existing bank debt.
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
Kosmos's founding private-equity sponsors, Warburg Pincus and Blackstone, priced a sale of 30 million shares (about 8% of the company) to the public market -- the first of what will become several sell-downs converting their post-IPO stake into free float. Kosmos itself receives no proceeds.
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.