Borr Drilling devises plan to strengthen financial footing

Offshore drilling contractor Borr Drilling has come up with a liquidity improvement plan with the support of creditors as part of its efforts to strengthen its financial footing.

As previously reported, Borr is in a challenging financial position and working actively with its creditors to strengthen the liquidity profile of the company.

The rig owner’s position has been further worsened due to payment delays from Pemex for rigs operating offshore Mexico.

In an update on Thursday, Borr said that, with considerable support of all secured creditors, a liquidity improvement plan amounting to $925 million over the next two years has been devised.

Subject to the company successfully raising $40 million in new equity, the lenders are supportive of the following outcome: the $400m syndicated bank facilities to defer maturity to Jan 2023; the $195m Hayfin facility to defer maturity to Jan 2023; $760m PPL facilities now mature in May 2023 and related interest of $107m in March 2023.

Furthermore, the lenders are supportive of the $272m Keppel facility to defer interest to May 2023 and the $620m in Keppel newbuilding commitments to be deferred to June 2023.

Finally, the $350m convertible bond remains in place unchanged with a maturity in May 2023.

Borr noted that these are all subject to final board and credit committee approvals.

The company will now negotiate the definitive documentation with a view to closing the same and raising new equity by 31 January 2021.

Patrick Schorn, Borr Drilling CEO, said: “Borr Drilling is very thankful for the support given by all the secured creditors and yards to strengthen the financial footing of the company. We consider this a great testimony to the quality of our people, assets, and operations who in turn deliver value to our customers”.