Kosmos Energy out with IPTs on $400M of 5.5-year notes

Kosmos Energy Ltd. is out with initial price thoughts in the 8.25% area on its planned $400 million (will not grow), 5.5-year (non-call two-year) senior unsecured bond issue, the proceeds of which are earmarked to redeem bridge notes issued to fund the acquisition of Anadarko WCTP Co.

The announcement follows an Oct. 19 global investor call, via global coordinators Barclays and Standard Chartered Bank. Pricing is expected today.

Investors should expect unsecured ratings of B+/B from S&P Global Ratings and Fitch, banks say, with both ratings outlooks expected to be positive. The company is rated B/B.

Kosmos Energy is a deepwater independent oil and gas exploration-and-production company, focused along the Atlantic Margins. Leverage will decrease from 3.9x to 3.3x pro forma for the transaction, according to a company presentation.