Borr Drilling Limited refers to its previous communication regarding its ongoing negotiations with creditors to reach mutual agreements to refinance and extend its 2023 maturities and complete such refinancing by 30 June 2022.
Significant progress has been made in the negotiations with the target to put in place the right capital structure for the company going forward. A complete solution will require a further equity injection combined with debt repayments, extensions and concessions by the creditors resulting in a robust capital structure that supports a low cash break even and thereby a higher free cash generation.
In order to have the required time to conclude full lock-up and commitments from all creditors, the necessary covenant waivers have been extended until 15 July 2022 by the lenders in the bank syndicate. Thus far specific proposals have been received from all creditor groups, some of which have already resulted in agreements in principle. In particular, we have agreed terms in principle for the refinancing of the senior secured bank facility in July 2022 to be funded with a mix of a new credit facility and equity/an asset sale.
We will continue to work with all remaining creditors to arrive at an optimized overall financing solution, targeted to be in place by 15 July 2022.
