#Senior Secured Notes #Bermuda #Hamilton #Borr Drilling #refinancing

Borr Drilling Limited Unveils Senior Secured Notes Offering

Borr Drilling Limited, a prominent name in the offshore drilling sector, has announced its intention to launch a significant senior secured notes offering. This strategic move involves its wholly-owned subsidiary, Borr IHC Limited, alongside direct subsidiary Borr Finance LLC, aiming to raise $1.6 billion in total principal amount of these notes, which are set to mature in 2032 and 2034.

The announcement was made from the company’s headquarters in Hamilton, Bermuda, and signals a robust plan for financial restructuring. The senior secured notes will be backed by Borr Drilling and various subsidiaries, ensuring that they are supported on a senior basis by a majority of the company's rigs and other relevant assets.

Purpose of the Offering

The proceeds from this offering are expected to be utilized for several critical financial strategies. Primarily, Borr Drilling aims to repurchase or redeem its existing 10.000% Senior Secured Notes maturing in 2028 and also address up to $447.3 million of its 10.375% Senior Secured Notes due in 2030. This financing maneuver is designed to streamline its debt load and fortify its financial standing amidst fluctuating market conditions.

The offering serves not only as a means to reduce the company’s outstanding debt but also facilitates the payment of associated fees and expenses related to both the notes offering and concurrent tender offers. By optimizing its debt structure, Borr Drilling looks to enhance its operational leverage in the rapidly evolving offshore drilling landscape.

Timing and Market Conditions

While the pricing details for the notes offering are anticipated on or around May 28, 2026, the completion of this offering and the concurrent tender offer is contingent upon specific market conditions and the smooth execution of related processes. This strategic timing is carefully calibrated to secure the best possible market reception for their debt instruments, allowing Borr Drilling to optimize financing costs.

Regulatory Considerations

It’s important to note that this announcement does not constitute a public offering. The securities associated with the senior secured notes have not been registered under the Securities Act of 1933 or corresponding state security laws, thus, they cannot be offered or sold in the United States unless they are registered or qualify for an exemption.

This structured approach reflects Borr Drilling's commitment to maintaining compliance with regulatory standards while pursuing strategic financing initiatives. The company has actively worked to position itself advantageously within the market while striving to protect the interests of its investors.

About Borr Drilling Limited

Founded in 2016 and listed publicly on the New York Stock Exchange since July 31, 2019, Borr Drilling Limited has established itself as a leading international drilling contractor. With a fleet of high-spec jack-up rigs, the company is dedicated to providing premier services in the shallow-water oil and gas sector. Borr Drilling’s strategic focus remains centered on maximizing operational efficiency and delivering value across the offshore drilling industry.

Forward-Looking Statements

As with any strategic announcement, Borr Drilling’s plans are accompanied by forward-looking statements, indicating anticipated outcomes while acknowledging the uncertainties and risk factors involved. These considerations serve to guide investor expectations and provide transparency regarding the company’s future directions and commitments.

In summary, Borr Drilling Limited's newly announced senior secured notes offering marks a pivotal step toward financial optimization aimed at enhancing liquidity and ensuring operational continuity in a competitive market environment. This initiative reflects the company’s proactive stance in navigating economic challenges while positioning itself for future success. Investors and stakeholders can look forward to more updates as the pricing and settlement timelines approach.

For further information, visit Borr Drilling's official website.