Borr Drilling Limited is pleased to announce that its bank syndicate and Hayfin have agreed to provide the Company with extra liquidity of approximately USD 12 million through a combination of PIK interest and deferral of funding of restricted cash accounts during the next 12 months. The Company has decided to lower the amount to be raised in the contemplated equity offering to USD 25-30 million, which combined with the lenders’ concession will provide Borr Drilling with sufficient liquidity.
Based on commitments from investors, the equity offering is covered and is expected to close around 7PM CET/1PM EST today, Tuesday 29 September.
Due to the market volatility and unfavorable price indication for the convertible bond, the Board of Directors has decided not to proceed with the proposed buy back of a portion of its convertible bond.
CEO Patrick Schorn commented as follows: “With the additional concessions from the lenders, management remains confident in the run-way being built. In total, the liquidity provided to the Company by the combination of equity and lender concessions is in excess of USD700m during 2021 and 2022. Immediately after closing of this equity transaction, we will start working with the yards to agree terms to further strengthen the liquidity runway.”
Completion of the equity offering is subject to (i) the Board of Directors resolving to consummate the equity offering and finally allocate the offer shares and (ii) publication of a prospectus approved by the Financial Supervisory Authority of Norway relating to the listing of the offer shares and certain of the offer shares in the May private placement on Oslo Stock Exchange. It is expected that the offer shares will be settled on or about 5 October 2020. The concessions from the banks and Hayfin are subject to satisfactory documentation and similar concessions from the yards, as previously disclosed in the investor presentation published by the Company on 22 September 2020.
Source: Borr Drilling
