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Borr Drilling agrees refinancing deal with most creditors

Norwegian jackup rig owner Borr Drilling has reached an agreement in principle with most secured creditors on the extension of the largest part of the secured debt until 2025.

The New York and Oslo-listed company said the deal depends on board approvals, and it is now seeking the required consent and waiver extensions from lenders to complete the transaction. Once in place, Borr will have long-term financing of $1.4bn, and will also have maintained $260m long-term financing of two newbuild rigs.

The Tor Olav Trøim-backed driller noted the refinancing will be enabled largely by additional equity and the sale of some assets, including the disposal of three rigs under construction or contract plus an additional rig targeted for sale in the fourth quarter of 2022. After the sale, Borr Drilling will have a fleet of 22 delivered rigs and two rigs under construction at Keppel FELS. 

The deals in principle consider partial paydown of the senior secured facility secured by eight rigs from $313m to $250m out of which $100m is subject to successful syndication. In the event that the facility is reduced to $150m drawn, three rigs will be unencumbered assets that could be sold to reduce capital requirements, Borr Drilling said, adding the deal also includes a $30m paydown of the Hayfin facility.

In June, the New York and Oslo-listed firm signed a binding letter of intent with an undisclosed third party to sell three jackups under construction for $320m. Borr Drilling shares have dropped by more than half since last month, but that did not stop BlackRock, one of the largest asset managers in the world, from increasing its stake in the company to more than 5%.

Adis Ajdin

Adis is an experienced news reporter with a background in finance, media and education. He has written across the spectrum of offshore energy and ocean industries for many years and is a member of International Federation of Journalists. Previously he had written for Navingo media group titles including Offshore Energy, Subsea World News and Marine Energy.
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