©Reuters.
DALLAS- Kosmos Energy Ltd . (NYSE/LSE: NYSE:), an independent oil and gas exploration and production company, announced its intention to offer $300 million in convertible senior notes due 2030 through a private placement, subject to market conditions and other types. The company also plans to offer initial purchasers an option to purchase an additional $45 million in securities.
The notes are to be senior, unsecured notes of par with Kosmos’ existing senior notes and revolving credit facility. They will be guaranteed by certain branches of the company on both a senior and subordinate basis. Kosmos intends to use the proceeds to repay some of its trading debt, fund limited call transactions and cover fees and expenses related to the offering.
The cap call transactions are expected to reduce potential dilution to Kosmos’ common stock upon conversion of the notes or offset cash payments in excess of the principal amount of the converted notes, subject to a limit. Options counterparties or their affiliates will engage in derivative transactions that could affect the market price of the company’s common stock or securities.
The offering is to qualified institutional buyers and will not be registered under the Securities Act of 1933 or state securities laws, instead relying on an exemption from registration requirements.
This press release contains forward-looking statements regarding the potential offering and its effects. Kosmos Energy, headquartered in Dallas, Texas, operates along the Atlantic margins with operations offshore Ghana, Equatorial Guinea, the U.S. Gulf of Mexico, and gas development offshore Mauritania and Senegal.
The information in this article is based on a press release from Kosmos Energy Ltd.
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