8 Mar 2024capital raising announcement● NeutralMajor
Kosmos completed the sale of $400 million of 3.125% convertible senior notes due March 15, 2030, including the full $50 million extra amount the initial purchasers could buy. The notes are unsecured, can be converted into shares at an initial price of about $7.02 per share (142.4501 shares per $1,000), and Kosmos will pay cash up to the principal on conversion, so any new shares would only cover the amount above that. This adds a new kind of debt to the existing senior notes stack, with possible dilution to shareholders if the share price rises above the conversion price. The filing also mentions capped call transactions entered with the pricing, but the text provided is cut off before their terms, so their effect is not described here.