Offshore rig contractor Borr Drilling is planning to make a public offering of $250 million of its common shares available in the US.
In connection with that, the company plans to grant the underwriters a 30-day option to purchase up to $25m of additional common shares.
A price of $3.60 per common share has been given.
No securities in the New York Stock Exchange offering will be offered or listed on the Oslo Stock Exchange.
Borr (NYSE:BORR) plans to use the cash raised to consummate a refinancing with its lenders under its Syndicated Facility, New Bridge Facility, Hayfin Facility and shipyard delivery financing arrangements with Keppel and PPL.
It will also go towards general corporate purposes, such as financing the company’s debt, payments to its creditors, and capital expenditures, including costs in connection with activations and re-activations of rigs.
DNB Markets, Clarksons Securities, Pareto Securities, ABG Sundal Collier, Arctic Securities, Fearnley Securities and SpareBank 1 Markets are the book-running managers for the offering.
Cleaves Securities is a co-manager for the offering.
Closing of the offering will be subject, firstly, to Borr’s authorised share capital being increased by 40,000,000 common shares, pursuant to a special general meeting to be held on August 16.
Secondly, it will hinge to the company’s authorised share capital being further increased by 35,000,000 common shares, pursuant to a second special general meeting to be held on August 25.
It is also subject to the company having entered into binding term sheets or other binding agreements with all applicable lenders or obtaining written commitments approved by the Borr’s board of directors.
A first settlement of the offering is expected on August 17, with the second forecast to follow on August 26.