Borr Drilling enters agreement to finance newbuild jack-up drilling rig

Source: press release, 17 February 2020

Borr Drilling, a drilling contractor that owns and operates jack-up rigs of modern and high-specification designs, provides drilling services to the oil and gas exploration and production industry worldwide
Borr Drilling, a drilling contractor that owns and operates jack-up rigs of modern and high-specification designs, provides drilling services to the oil and gas exploration and production industry worldwide (photo: Borr Drilling)

Borr Drilling Limited has announced that the company has entered into a new financing arrangement for the newbuild jack-up rig Tivar, scheduled to be delivered from the yard in July 2020. The existing USD 50 million bank delivery financing for the rig will be replaced with a new USD 100 million take out facility maturing in December 31, 2021. As part of the agreement the delivery of the jack up rigs Vale and Var are conditional upon full repayment of the facility or can be carried out 180 days after an early repayment of the financing.

Borr Drilling’s total remaining newbuild capex is currently USD 707 million, of which USD 620 million is now fully financed, and the new arrangement has reduced the unfunded delivery capex for 2020 by USD 85 million.

The USD 100 million in financing and delivery date amendments will, together with the adjustments in the bank agreements achieved in December 2019, substantially improve the company’s liquidity position in 2020 and 2021.