Borr Drilling ( NYSE: BORR ) said Thursday it reached agreements in principle with most of its secured creditors to extend the majority of secured debt to 2025; shares nevertheless open -17.3% as oil and gas stocks suffer a broad rout.
Borr ( BORR ) said it is seeking the required consents and waiver extensions from lenders to complete the transaction; once in place, the company will have long term financing on ~$1.4B and has maintained $260M in long-term financing on the two newbuilds.
The company said the refinancing will be enabled largely by additional equity and the sale of some assets, including three rigs under construction or contract plus an additional rig targeted to be sold in Q4.
Borr Drilling ( BORR ) shares have fallen by more than half since June 1 as the company engaged in drawn-out refinancing talks .
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Borr Drilling reaches refinancing deals with most creditors