Why Kosmos Energy Stock Jumped 26% at the Open Today
Shares of offshore energy driller Kosmos Energy (NYSE: KOS) rose sharply at the start of trading today, advancing as much as 26% in early action. The price advance lost steam pretty quickly, however, with the stock up a still significant, but far lower, 13% by around 10 a.m. EDT.
The driver here is really a two-part story. The first piece of the tale is that Kosmos announced a fairly complex financing agreement. According to the company, it restructured an existing Gulf of Mexico prepayment facility into a $200 million term loan with a five-year term. The loan is secured by Kosmos' U.S. Gulf of Mexico assets. The loan carries an interest rate of about 6% and increases the company's borrowing capacity by $50 million. It can be increased to $300 million, as well. All in, Kosmos has given itself some additional financial breathing room.
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Source Fool.com