HAMILTON, Bermuda, July 21,
2022 /PRNewswire/ -- Borr Drilling Limited (the
"Company") (NYSE: BORR) (OSE: 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%.
This press release does not constitute an offer of any
securities for sale.
Forward looking statements
This press release includes forward looking statements within
the meaning of the U.S. Private Securities Litigation Reform Act of
1995, which do not reflect historical facts and may be identified
by words such as "expect", "will" and similar expressions and
include statements relating to negotiations with creditors,
agreements in principle reached with creditors including the terms
and conditions of such agreements in principle and financing
proposal and statements about covenant waivers enabling the Company
to complete the transactions, statements about the need for
additional liquidity, and the Company's continuing to seek
solutions to optimize its capital structure and about momentum in
day rates other non-historical statements. Such forward-looking
statements are subject to risks, uncertainties, contingencies and
other factors 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 conditions
to the agreements in principle are not met or that the terms of the
agreements in principle are not implemented with definitive binding
agreements on expected terms or at all, the risk that vessel sales
may not be completed on expected terms or at all, risks relating to
covenants in debt facilities and covenant waivers including the
risk that waivers are not provided as required, risks relating to
liquidity and the risk that Borr may not be able to refinance its
debt maturities beyond 2023 and other risks and uncertainties
described in the section entitled "Risk Factors" in our most recent
annual report on Form 20-F and other filings with the Securities
and Exchange Commission. Such risks, uncertainties, contingencies
and other factors could cause actual events to differ materially
from the expectations expressed or implied by the forward-looking
statements included herein. These forward-looking statements are
made only as of the date of this release. We do not undertake to
update or revise the forward-looking statements, whether as a
result of new information, future events or otherwise.
Contact:
Magnus Vaaler, Chief Financial
Officer,
mvaaler@borrdrilling.com
+44 1224 289208
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SOURCE Borr Drilling Limited