Borr Drilling secures last part of rescue plan

Embattled rig company Borr Drilling has landed a deal about a remaining financial loan, ensuring the final agreement about prolongation of loans.
Photo: Handout/Reuters/Ritzau Scanpix
Photo: Handout/Reuters/Ritzau Scanpix

Drilling company Borr Drilling has landed a final decisive loan and has thereby secured an overall deal concerning prolongation of debt until 2025.

The deal entails a financing proposal of USD 100m, according to a stock exchange announcement.

The drilling firm recently secured a deal for an extension of the secured debt after having struggled to land a rescue plan for a long time. However, the full financing still depended on an equity injection, which has now been handled via a loan.

The company expects there may be a need for further capital, though. Borr Drilling will therefore continue seeking out solutions to restore the capital structure and in order to reduce the need of further financial loans, according to the announcement.

”Such solutions could include further asset sales,” writes Borr Drilling.

In June, the drilling company divested three rigs as part of the refinancing plans. The three rigs were sold at a price USD 320m meant to be used to pay delivery costs for the rigs and to ”eliminate the associated activation costs that would have applied in the future.”

(This article was provided by our sister media ShippingWatch)

Borr Drilling lands rescue plan agreement

Refinancing of Borr Drilling requires new equity injection

Borr Drilling sells three rigs

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