Borr Drilling Limited to Offer $250 Million in Convertible Senior Notes Due 2033

Borr Drilling Limited Announces Convertible Senior Notes Offering

Borr Drilling Limited, listed on the NYSE and Euronext Growth Oslo under the ticker BORR, has made a major announcement today regarding a proposed offering of $250 million in convertible senior notes due in 2033. This strategic move highlights the company’s ongoing efforts to manage its financial obligations effectively and to support its operational initiatives in the offshore oil and gas sector.

The offering is planned to be made available to qualified institutional buyers under Rule 144A of the Securities Act of 1933. Following the initial offering, the company intends to grant the initial purchasers of these notes an option to purchase an additional amount of up to $37.5 million within a 13-day period. This option is designed to provide flexibility in case of over-allotments.

These convertible senior notes will be classified as senior, unsecured commitments from Borr Drilling. Interestingly, they will pay interest on a semi-annual basis and, as per the company’s discretion, can be converted into its common shares, cash, or a mix of both at maturity, which is set for 2033. This feature could be appealing for investors considering the potential appreciation of the company's stock in the years to come.

The funds raised from this offering are targeted mainly for two distinct purposes. Firstly, Borr Drilling plans to repurchase its existing convertible bonds due in 2028, thereby consolidating its debt obligations. Additionally, the company will allocate a portion of these proceeds for general corporate purposes, which may include operational advancements and enhancing their drilling capabilities, specifically in shallow-water projects.

In anticipation of this note offering, Borr Drilling may engage in concurrent note repurchase transactions for its outstanding convertible bonds. This approach would involve negotiating terms with existing bondholders, enabling the company to manage its debt more efficiently. While plans have been laid out, the exact volume of bonds to be repurchased and the specific terms remain uncertain and will depend on various market factors.

Additionally, Borr Drilling acknowledges that current bondholders engaged in equity hedging related to their holdings might need to adjust their positions accordingly. For instance, if they choose to unwind their capital risks, they might buy Borr's common shares or enter into various derivative transactions. Such activities could significantly influence the stock's market price, either raising or curtailing declines depending on market dynamics.

It’s crucial for potential investors and stakeholders to understand that this announcement is purely informational and does not constitute a direct offer or solicitation to buy securities. The securities mentioned have not been registered under the Securities Act of 1933, and their sale or offering is restricted in certain jurisdictions.

About Borr Drilling Limited

Founded in 2016 and based in Bermuda, Borr Drilling Limited is an established international drilling contractor. The company has been listed on the New York Stock Exchange since July 2019 and focuses on hiring out jack-up rigs that are modern and high-spec designed, catering to the shallow-water segment of the global offshore oil and gas industry. Borr Drilling's commitment to enhancing drilling technology and safety standards aligns with growing industry demands for responsible and effective resource extraction.

As they progress, Borr Drilling is poised to strengthen its market position and continues to explore financial strategies that enhance shareholder value while ensuring corporate growth. More information can be accessed on their official website: Borr Drilling.