Borr Drilling Limited (the "Company") (BORR) refers to its announcements of 14 July 2022 regarding the status of negotiations with its secured creditors and a possible
equity offering.
The Company's board is pleased to announce that it has obtained a financing proposal for the remaining $100 million of the $250 million senior secured facilities that was still subject to final syndication as described in the announcement of 14 July 2022. As such, agreements in principle with all the secured creditors have now been reached to extend all secured debt to 2025, subject to the partial paydowns described in the 14 July announcement. These agreements in principle are subject to the respective boards' and credit committees' approvals and binding documentation. The necessary covenant waivers have been extended by the lenders in the existing bank syndicate to enable the company to complete the transactions referenced above.
The Company anticipates that the need for additional liquidity in connection with the closing of the agreements in principle referenced above can be reduced from the $250 million communicated previously to approximately $150 million.
The Company will continue to seek solutions which could optimize the current capital structure and reduce the need for liquidity further. Such solutions could include further asset sales, JV structures as well as additional asset financing.
The Company is encouraged by the strong positive momentum in day rates shown through recent fixtures and tender activity, and by the fact that the utilization of the modern jack up fleet now exceeds 92%.
