Borr Drilling Limited announced the completion of a $300 million offering of convertible senior notes due 2033, fully subscribed and priced at a 3.50% annual coupon payable semi‑annually. The notes mature on May 1, 2033.
The company will deploy the proceeds to repurchase $195.2 million of its 2028 convertible bonds and to support general corporate purposes. The repurchase reduces outstanding convertible debt, extends the debt maturity profile, and lowers near‑term refinancing risk.
The offering included an over‑allotment option that added $40 million to the aggregate principal, bringing the total issued amount to $340 million. The first interest payment is scheduled for November 1, 2026.
The initial conversion price is set at approximately $8.00 per share, a premium of more than 40% over the April 14, 2026 closing price of $5.70. The high conversion premium means equity dilution will only materialize if the share price rises substantially above the current level.
Borr Drilling’s recent financial performance shows a trend of improving operating results. In Q4 2025 the company reported operating revenues of $259.4 million and adjusted EBITDA of $105.4 million, down from $263.1 million and $136.7 million in Q4 2024, reflecting a shift in the mix of day‑rate contracts and a decline in day rates for some rigs.
Management highlighted that the refinancing is intended to extend the company’s debt maturity profile and reduce near‑term refinancing pressure. CEO Bruno Morand noted that market dynamics are setting the stage for improvements in the second half of 2026 and a recovering day‑rate environment into 2027.
The transaction is expected to improve Borr Drilling’s balance‑sheet leverage and provide liquidity for future capital‑market activity, positioning the company to pursue additional rig acquisitions or strategic investments in its jack‑up fleet.
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