Borr Drilling Limited is pleased to confirm that the liquidity improvement plan announced in December 2020 has received support from its creditors, including:
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The $400m syndicated bank facilities maturity deferred to January 2023
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The $195m Hayfin facility maturity deferred to January 2023
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$760m PPL facilities maturity amended to May 2023, with interest payments deferred until March 2023, except $6m payment in 2021 and $12m in 2022 (estimated accumulated interest deferred is in excess of $110m, including the approximately $65m announced in May 2020)
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The $272m Keppel newbuild delivery facilities for three delivered rigs all extended by one year (from five to six year financing) and interest deferred to the fourth anniversary of the drawdown of each loan. The Company will make payments to Keppel of $6m in 2021 and $12m in 2022
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The $620m in Keppel newbuilding delivery commitments for five rigs deferred to 2023, with the first delivery in May 2023 and the final delivery in December 2023
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In addition, there will be amendments to certain of the current financial covenants, including the minimum value covenants
These terms have been approved by the credit committees of the syndicate banks and Hayfin. In addition, the Company has a signed term-sheet with PPL, and an agreement in principle with Keppel, subject to final board approval. The agreements above are subject to conditions, including completion of a $40m equity raise. The Company is working on definitive documentation to reflect these terms expected to be concluded shortly.
“Borr Drilling is very thankful for the support received from its creditors. The liquidity improvement plan, which started mid-2020, including this recent financing plan, has contributed over USD 1 billion in total liquidity improvements until 2023 and improved our runway. We remain optimistic about the opportunities for Borr Drilling in the current market environment” says CEO Patrick Schorn
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