Kosmos Energy Announces Secondary Public Offering of Common Shares and Share Repurchase
Kosmos Energy Ltd. (“Kosmos”) (NYSE: KOS) announced today that funds
affiliated with Warburg Pincus LLC (“Warburg Pincus” or the “Selling
Shareholder”), have agreed to sell an aggregate of 15 million of
Kosmos’s common shares in a registered underwritten public offering (the
“Offering”). The Selling Shareholder expects to grant the underwriter an
option to purchase up to an additional 2.25 million common shares on the
same terms and conditions, exercisable within 30 days. Kosmos will not
receive any of the proceeds from the sale of the common shares. Barclays
is acting as the underwriter of the Offering.
In addition, Kosmos announced that it has agreed to repurchase 35
million of Kosmos’s common shares from Warburg Pincus in a separate,
privately negotiated Share Repurchase Agreement (the “Share Repurchase”)
at a price equal to the price per share that the Selling Shareholder
will receive from its sale of Kosmos’s common stock to the underwriter
of the Offering. The Company intends to fund the Share Repurchase with
cash on hand and other available sources of liquidity. Although the
Share Repurchase will be conditioned upon, among other things, the
closing of the Offering, the closing of the Offering will not be
conditioned upon the closing of the Share Repurchase. The Share
Repurchase has been unanimously approved by disinterested members of the
Company’s Board of Directors who are not affiliated with the Selling
Shareholder.
Andrew G. Inglis, chairman and chief executive officer, said: “We are
very pleased to come to an agreement with Warburg to help facilitate and
accelerate a significant reduction in their position. We were able to
take advantage of this unique opportunity and our strong balance sheet
to re-purchase shares at an attractive price. In addition, this
transaction further broadens our shareholder register and increases the
company’s free float.”
The Offering is being made pursuant to an effective shelf registration
statement, including a prospectus, filed by Kosmos with the U.S.
Securities and Exchange Commission (the “SEC”) on August 28, 2018.
Before you invest, you should read the prospectus in that registration
statement and other documents Kosmos has filed with the SEC for more
complete information about Kosmos and the Offering. You may get these
documents for free by visiting the SEC website at www.sec.gov.
Alternatively, copies of the prospectus and a prospectus supplement,
when available, may be obtained from Barclays, c/o Broadridge Financial
Solutions, 1155 Long Island Avenue, Edgewood, New York 11717 (Tel:
1-888-603-5847) or by e-mailing Barclaysprospectus@broadridge.com.
This press release is for informational purposes only and does not
constitute an offer to sell, or a solicitation of an offer to buy, nor
shall there be any sale of these securities in any state or jurisdiction
in which such an offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of any such
state or jurisdiction.
About Kosmos Energy
Kosmos is a full-cycle deepwater independent oil and gas exploration and
production company focused along the Atlantic Margin. Our key assets
include production offshore Ghana, Equatorial Guinea and U.S. Gulf of
Mexico, as well as a world-class gas development offshore Mauritania and
Senegal. We also maintain a sustainable exploration program balanced
between proven basin short-cycle exploration (Equatorial Guinea and U.S.
Gulf of Mexico), emerging basins (Mauritania, Senegal and Suriname) and
frontier basins (Cote d’Ivoire, Namibia and Sao Tome and Principe). As
an ethical and transparent company, Kosmos is committed to doing things
the right way. The company’s Business
Principles articulate our commitment to transparency, ethics, human
rights, safety and the environment.
Forward-Looking Statements
This press release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended. All
statements, other than statements of historical facts, included in this
press release that address activities, events or developments that
Kosmos expects, believes or anticipates will or may occur in the future
are forward-looking statements. Kosmos’ estimates and forward-looking
statements are mainly based on its current expectations and estimates of
future events and trends, which affect or may affect its businesses and
operations. Although Kosmos believes that these estimates and
forward-looking statements are based upon reasonable assumptions, they
are subject to several risks and uncertainties and are made in light of
information currently available to Kosmos. When used in this press
release, the words “anticipate,” “believe,” “intend,” “expect,” “plan,”
“will” or other similar words are intended to identify forward-looking
statements. Such statements are subject to a number of assumptions,
risks and uncertainties, many of which are beyond the control of Kosmos,
which may cause actual results to differ materially from those implied
or expressed by the forward-looking statements. Further information on
such assumptions, risks and uncertainties is available in Kosmos’
Securities and Exchange Commission (“SEC”) filings. Kosmos undertakes no
obligation and does not intend to update or correct these
forward-looking statements to reflect events or circumstances occurring
after the date of this press release, except as required by applicable
law. You are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date of this
press release. All forward-looking statements are qualified in their
entirety by this cautionary statement.
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