OSLO, Norway, Sept. 22, 2020 /PRNewswire/ -- Borr Drilling
Limited (the "Company") (NYSE: BORR) (OSE: BDRILL) is pleased to
announce that it has reached agreement with the bank syndicates and
with Hayfin, who in sum provides USD595m in loan facilities, to extend their
maturity to January 2023 and lower
the minimum liquidity covenant to USD5m until maturity. The next step of the plan
is to reach agreement with the yards before year end 2020 to extend
all remaining instalments and maturities under the Company's
yard facilities to 2023 and beyond.
As part of the concessions reached with these lenders, the
Company has committed to raise equity in order to improve the
Company's liquidity profile and, at the Board's discretion, use
part of the proceeds to buy back some of its convertible bonds at a
significant discount to par. This will strengthen the balance sheet
ahead of possible industry consolidation.
The operational performance of the integrated well services in
Mexico continues to progress well,
however payment delays have caused the Company to experience calls
for working capital advances which have been larger than expected.
With reference to the Q2 2020 report released by the
Company on 28 August 2020, in
which the Company announced a proposed payment plan from Pemex to
the Company's integrated well services joint venture entities in
Mexico, the Company is pleased to
inform that, since the end of Q2 2020, these entities have received
USD 103m in payments from Pemex which
amounts to approximately 65% of the total amount outstanding for
work performed. This improvement in collections will positively
impact the Company's working capital situation, and together with
the remaining payment for the work already performed, eventually
allow distributions to the Company.
"We are pleased to have found an agreement with the Company's
banks and Hayfin which together with the new equity, will improve
the liquidity in excess of USD700m
over the next 2 years. We are confident that with this agreement
and the continued support of the yards, we are creating a long-term
solution, with low cash-breakeven for the coming years," says
Patrick Schorn, CEO of Borr
Drilling, in a comment.
For further details on our business and the contemplated
transactions, including an updated working capital statement, the
equity offering and a discussion of Risk Factors we face, please
refer to the presentation published today attached to this release
and on our website: http://borrdrilling.com/presentations/
Hamilton, Bermuda
22 September 2020
FORWARD LOOKING STATEMENTS
This announcement includes forward looking statements. Forward
looking statements are, typically, statements that do not reflect
historical facts and may be identified by words such as
"anticipate", "believe", "continue", "estimate", "expect",
"intends", "may", "should", "will" and similar expressions and
include statements with respect to the payment plan of Pemex to our
integrated well service joint venture entities and the expectation
that this will allow distributions to us, statements with respect
to agreements with lenders and our plan to extend debt maturities
and seek concessions from creditors, statements with respect to our
commitment to raise equity and our plan to repurchase convertible
notes and other non-historical statements. The
forward-looking statements in this announcement are based upon
various assumptions, many of which are based, in turn, upon further
assumptions, which are, by their nature, uncertain and subject to
significant known and unknown risks, contingencies and other
factors which are difficult or impossible to predict and which are
beyond our control. Such risks, uncertainties, contingencies and
other factors could cause actual events to differ materially from
the expectations expressed or implied by the forward-looking
statements included herein. Important factors that, in our view
could cause actual results to differ materially from those
discussed in the forward looking statements include risks relating
to our industry and business and liquidity, the risk of delays in
payments to our integrated well service joint venture entities and
consequent payments to us, risks relating to our agreement with
lenders including our ability to meet the conditions set forth
herein for a maturity extension, our ability to meet our debt
obligations and obligations under rig purchase contracts, risks
relating to our ability to meet our obligations as they fall due,
risks relating to our liquidity requirements, risks relating
to future financings including the risk that future
financings may not be completed when required and future equity
financings will dilute shareholders and the risk that the foregoing
would result in insufficient liquidity to continue our operations
or to operate as a going concern and other risks factors set forth
under "Risk Factors" in our filings with the U.S. Securities and
Exchange Commission.
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Borr Drilling -
Investor Presentation September 2020
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SOURCE Borr Drilling Limited