Kosmos Energy’s $1.225 Billion Acquisition of Deep Gulf Energy

Vinson & Elkins advised Deep Gulf Energy Companies (DGE), a portfolio company of global private equity investment firm First Reserve, in an agreement to sell DGE to Kosmos Energy for a total consideration of $1.225 billion.

Under the terms of the transaction, Kosmos will acquire DGE for total consideration of $1.225 billion, comprised of $925 million in cash and $300 million in Kosmos common shares issued to First Reserve, management, and other DGE shareholders. Kosmos intends to fund the cash portion of the purchase price with borrowings under its existing credit facilities. In connection with the transaction, Kosmos has received $200 million of additional firm commitments to increase its reserves-based loan facility capacity.

The acquisition is expected to close around the end of the third quarter 2018, subject to receipt of regulatory approval and the satisfaction of customary closing conditions.

Evercore Inc. and Goldman Sachs & Co. LLC acted as financial advisors to Kosmos.

DGE is a deepwater oil and gas exploration and development business operating in the Gulf of Mexico.

The V&E corporate team was led by partners Shamus Crosby (Picture), Bryan Loocke and Doug McWilliams and senior associate Benji Barron with assistance from associate Mike Marek. Also advising were partners David Peck, Jason McIntosh, Stephen Jacobson, Sean Becker, Larry Nettles and Billy Vigdor.

 

Involved fees earner: Shamus Crosby – Vinson & Elkins LLP; Douglas McWilliams – Vinson & Elkins LLP; Benjamin Barron – Vinson & Elkins LLP; Michael Marek – Vinson & Elkins LLP; David Peck – Vinson & Elkins LLP; Jason McIntosh – Vinson & Elkins LLP; Stephen Jacobson – Vinson & Elkins LLP; Sean Becker – Vinson & Elkins LLP; Larry Nettles – Vinson & Elkins LLP; William Vigdor – Vinson & Elkins LLP; Bryan Loocke – Vinson & Elkins LLP;

Law Firms: Vinson & Elkins LLP;

Clients: Deep Gulf Energy;

 

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Author: Ambrogio Visconti