Norwegian jackup rig owner Borr Drilling has signed a binding letter of intent with an undisclosed third party to sell three high-specification units under construction at Keppel FELS shipyard for $320m.
The New York and Oslo listed firm said the sale transaction of the rigs named Tivar, Huldra and Heidrun is expected to conclude within 30 days, adding that they should be employed in a captive market and represent limited competition to its fleet. Borr Drilling also added it would use the cash to pay for the delivery instalments of the three rigs and eliminate the associated activation costs that would have applied in the future.
This transaction is said to form an integral part of the refinancing and optimisation of the capital structure of the company. “The company continues to actively engage with its creditors with a view to completing its refinancing and expects to update the market further on the progress in the coming days,” Borr Drilling said in a stock exchange filing on Monday.
After the sale, the Tor Olav Trøim-backed driller will have a fleet of 23 delivered rigs and two rigs under construction at Keppel FELS.