Singapore’s Sembcorp Marine has confirmed it will extend the time for repayment terms for Borr Drilling from 2023 to 2025 for the nine jackup rigs that its PPL Shipyard delivered to the driller between 2017 to 2019 after a final deal was signed.
The deferment of $800m in receivables will result in Borr making earlier and higher amounts of interest payments and partial principal repayments to Sembmarine-owned PPL Shipyard (PPLS) from 2022 to 2024.
Borr and its subsidiaries in October 2017 bought nine jackup rigs from PPL for around $1.3bn and made an upfront down payment of about $500m, with the remaining balance to come within five years of the respective rig delivery dates.
The Oslo-listed driller has also fulfilled required conditions including the raising of certain amounts of equity and completion of the refinancing of its other secured creditors, Sembmarine said in a regulatory filing.
The group added that the deal with Borr Drilling is not expected to have any material impact on its net tangible assets or earnings per share in FY2022.