Norwegian offshore driller Borr Drilling has improved its financial position with the negotiating of a new agreement with lenders.
The company has reached agreement with its bank syndicates and with Hayfin to extend the maturity of $595m worth of loan facilities to January 2023. It was also agreed that the minimum liquidity covenant would be reduced to $5m until maturity.
As part of the agreement reached with the lenders, Borr Drilling has committed to raise equity in order to improve the company’s liquidity profile, and use part of the proceeds to buy back some of its convertible
bonds at a significant discount to par.
Borr Drilling says it also plans to reach an agreement with shipyards to extend all remaining instalments and maturities under the company’s yard facilities.
Patrick Schorn, CEO of Borr Drilling, commented: “We are pleased to have found an agreement with the company’s banks and Hayfin which together with the new equity, will improve the liquidity in excess of $700m over the next two years. We are confident that with this agreement and the continued support of the yards, we are creating a long-term solution, with low cash-breakeven for the coming years.”