Fleet Financing

Borr Drilling Limited – Refinancing Update

Oslo, Norway, July 14, 2022 /PRNewswire/ — Borr Drilling Limited (the “Company”) (NYSE and OSE: BORR) refers to its communication of June 30, 2022 regarding the status of negotiations with its secured creditors. The Company’s Board of Directors is pleased to report that agreements in principle have been reached with most secured creditors to extend the majority of secured debt through 2025. These agreements are subject to respective Board approvals and to binding documentation. The company is seeking the necessary consents and waiver extensions from the lenders to complete the transaction. Once these agreements are in place, the Company will have long-term financing for approximately $1.4 billion and also maintained the long-term financing of the 2 new constructions in the amount of $260 million. Refinancing is to be largely made possible by the sale of selected assets and additional equity.

The asset sale includes 3 rigs under construction/contract for which the company has received a binding letter of intent as previously announced, plus an additional rig which is expected to be sold in Q4 2022, after which the fleet of rigs would consist of 22 rigs delivered plus 2 rigs under construction.

The agreements in principle provide for the partial repayment of the senior secured facility guaranteed by 8 platforms of $313 million at $250 million among which $100 million is submitted for successful syndication. In the event that this facility is reduced to $150 million drawn, then 3 rigs will be unencumbered assets that could be sold to reduce capital requirements. In addition, the agreements in principle envisage a $30 million reimbursement of the installation of Hayfin.

Questions should be directed to: Magnus VaalerCFO, +44 1224 289208

This press release does not constitute an offer of securities for sale. This press release does not constitute an offer of securities for sale in United Statesand the securities may not be offered or sold in United States in the absence of registration or an exemption from registration, and any public offering of securities to be made in United States will be made by means of a prospectus which may be obtained from the issuer and which will contain detailed information on the company and the management, as well as financial statements.

Forward-looking statements

This press release contains forward-looking statements that do not reflect historical facts and can be identified by words such as “expect”, “will” and similar expressions and include statements relating to negotiations with creditors, agreements in principle entered into with creditors, in order to request waiver extensions and consents from lenders, including the terms and conditions of these agreements in principle and statements of capital raising objectives, $100 million syndicated secured facilities, statements regarding proposed sales of vessels and rig fleet and other non-historical statements. These forward-looking statements are subject to risks, uncertainties, contingencies and other factors that could cause actual events to differ materially from the expectations expressed or implied by the forward-looking statements included herein, including risks relating to negotiations with creditors, including the risk that the terms of the agreements in principle are not satisfied or that the terms of the agreements in principle are not implemented with definitive binding agreements on the terms provided or at all, the risk that the lenders fail to provide the necessary extensions of waivers and consents, the risk of syndication failure of the secured facility, the risk that sales of vessels will not be completed on the terms intended or at all, the risks associated with covenants on credit facilities and liquidity and the risk that Borr may not be able to refinance its maturities of debt beyond 2023, the risks associated with the planned capital increase, including the risk that the capital increase will not be completed to the expected amount or on the expected schedule and the impact of these risks on the tentative agreement and other risks and uncertainties described in the section titled “Risk Factors” in our most recent Annual Report on Form 20-F and other filings with the Securities and Exchange Commission

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SOURCE Borr Drilling Limited