Borr raising cash for Keppel rig buy

  • Business & Finance

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.”

 

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