Norwegian offshore driller Borr Drilling is raising cash to finance the previously announced five-rig buy from Keppel.
The company on Wednesday morning announced the successful placing of $350 million in principal amount of convertible bonds with a five-year tenor.
Part of the proceeds from the Bonds will be used to finance the purchase of five rigs from Keppel FELS shipyard.
As reported this morning , total consideration for the rig acquisition is expected to be $745 million.
The senior unsecured Bonds will be convertible into shares of the company. The Bonds will have a coupon of 3.875% per year, payable semi-annually in arrear in equal installments and a conversion premium of 37.5% over $4.87 (the price per Share at which Shares have been sold in the Concurrent Equity Offering). The initial conversion price will be $6.6963.
Borr Drilling also said it secured optional delivery financing of the rigs of $432 million and entered into a $200 million bank facility, “both on attractive terms.”