Borr Drilling Limited - Announces Pricing of Additional Senior Secured Notes Offering

Borr Drilling (NYSE: BORR) announced that subsidiaries priced an offering of additional 10.375% senior secured notes due 2030 for gross proceeds of approximately $165 million on Dec 9, 2025.

Rhea-AI Summary

Borr Drilling (NYSE: BORR) announced that subsidiaries priced an offering of additional 10.375% senior secured notes due 2030 for gross proceeds of approximately $165 million on Dec 9, 2025.

The Additional Notes match the terms of existing 2030 secured notes. The company expects settlement on or about December 19, 2025, subject to customary closing conditions.

Proceeds, together with a previously announced equity offering, seller financing and available cash if needed, are planned to fund the acquisition of five premium jack-up rigs (announced Dec 8, 2025) and for general corporate purposes including debt service, capex, working capital and potential M&A.

Positive

• Gross proceeds of $165 million from Additional Notes
• Notes replicate terms of existing 2030 senior secured notes
• Proceeds targeted to acquire five premium jack-up rigs

Negative

• High coupon of 10.375% increases interest expense
• Planned equity offering may cause shareholder dilution
• Settlement subject to customary closing conditions (not guaranteed)

Argus Dec 9 session

+7.39% close to close Open Argus

Details

News Market Reaction – BORR

On Dec 9, the day this news came out, BORR closed 7.39% above the previous close.

Data tracked by StockTitan Argus for the Dec 9 session.

Key Figures

Coupon rate: 10.375% Gross proceeds: $165 million Maturity year: 2030 +2 more

Coupon rate

10.375%

Interest rate on additional senior secured notes due 2030

Gross proceeds

$165 million

Additional senior secured notes offering

Maturity year

2030

Due date for senior secured notes

Jack-up rigs

5 rigs

Acquisition to be funded in part by notes and equity

Expected settlement date

On or about Dec 19, 2025

Closing timeline for additional notes offering

Historical Context

5 past events · Latest: Dec 08

5 events

1. Dec 08

   Equity offering

   24h Move

   +0.3%

   Equity raise to help fund five jack-up rig acquisition and corporate uses.

2. Dec 08

   Rig acquisition

   24h Move

   +0.3%

   Agreement to acquire five premium jack-up rigs for fleet expansion.

3. Dec 08

   Peer asset sale

   24h Move

   +0.3%

   Noble divestment includes sale of five jackups to Borr, pending financing.

4. Nov 05

   Earnings update

   24h Move

   +0.7%

   Q3 results with revenue growth, solid EBITDA and 2026 contract coverage.

5. Oct 27

   Contract extensions

   24h Move

   +4.3%

   Multi-year jack-up extensions and Mexico collections supporting backlog.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

senior secured notes, seller financing, working capital, mergers and acquisitions, +2 more

6 terms

senior secured notes financial

"priced an offering of additional 10.375% senior secured notes due 2030"

Senior secured notes are loans a company sells to investors that are backed by specific assets and given first priority for repayment if the company defaults. Because they have a claim on collateral and are paid before other debts, they usually offer lower risk and correspondingly lower interest than unsecured debt; investors use them to judge how safe repayment and recovery of principal might be, like holding a mortgage instead of an unsecured credit card balance.

seller financing financial

"together with the proceeds from its previously announced equity offering, seller financing and, if necessary, available cash"

Seller financing is a deal where the seller acts like the bank and lets the buyer pay for an asset over time instead of requiring full cash up front. For investors, that changes when and how much cash is received, creates extra credit risk because the seller depends on the buyer’s payments, and can affect valuation and liquidity — similar to getting a steady stream of loan payments rather than one lump sum sale.

working capital financial

"which may include debt service, capital expenditures, funding of working capital and potential mergers and acquisitions"

Working capital is the money a business has available to cover its daily expenses, like paying bills and buying supplies. It’s like the cash in your wallet that helps you handle everyday costs; having enough ensures the business can operate smoothly without running into money shortages.

View in glossary

mergers and acquisitions financial

"funding of working capital and potential mergers and acquisitions"

Mergers and acquisitions are processes where companies combine or one company purchases another to grow or improve their business. Think of it like two teams joining forces or one team buying out another to become stronger and more competitive. These activities matter to investors because they can influence a company's value, future growth, and overall market position.

forward-looking statements regulatory

"The press release include forward-looking statements within the meaning of Section 27A"

Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.

Form 20-F regulatory

"under "Risk Factors" in our annual report on Form 20-F for the year ended December 31, 2024"

Form 20-F is the standardized annual disclosure that non-U.S. companies must file with the U.S. securities regulator when their shares are traded in the U.S.; it contains audited financial statements, a plain-language description of the business, management discussion, governance details and key risk factors. It matters to investors because it provides a consistent, comparable company “report card” and rulebook, helping buyers assess financial health, governance and risks before investing.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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HAMILTON, Bermuda, Dec. 9, 2025 /PRNewswire/ -- Borr Drilling Limited (NYSE: BORR) (the "Company") announced today that its wholly owned subsidiary Borr IHC Limited and certain other subsidiaries have priced an offering of additional 10.375% senior secured notes due 2030 (the "Additional Notes") for gross proceeds of approximately $165 million.

The Additional Notes will have the same terms and conditions as the existing senior secured notes due 2030.

The Company plans to use the proceeds from the Additional Notes offering, together with the proceeds from its previously announced equity offering, seller financing and, if necessary, available cash, for the acquisition of five premium jack-up rigs announced by the Company on December 8, 2025 and for general corporate purposes, which may include debt service, capital expenditures, funding of working capital and potential mergers and acquisitions. Settlement of the Additional Notes is expected on or about December 19, 2025 and is subject to customary closing conditions.

This press release is for information purposes only and does not constitute or form part of an offer to sell or the solicitation of an offer to purchase or subscribe for securities, nor will there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction. The securities referred to herein have not been and will not be registered under the U.S. Securities Act of 1933 (the "U.S. Securities Act") or applicable state securities laws, and may not be offered or sold in the United States or to U.S. persons (other than distributors) unless such securities are registered under the U.S. Securities Act, or an exemption from the registration requirements of the U.S. Securities Act is available.

Forward-looking statements

The press release include forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, including the expected closing date of the Additional Notes offering, the intended use of proceeds including the acquisition of five premium jack-up rigs and other non-historical statements. These forward-looking statements are subject to numerous risks, uncertainties and assumptions, including risks relating to  the closing of the Additional Notes, risks related to the use of proceeds including the acquisition of five premium jack-up rigs and other risks included in our filings with the Securities and Exchange Commission including those set forth under "Risk Factors" in our annual report on Form 20-F for the year ended December 31, 2024. Forward-looking statements reflect knowledge and information available at, and speak only as of, the date they are made. Except as required by law, the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date hereof or to reflect the occurrence of unanticipated events. Readers are cautioned not to place undue reliance on such forward-looking statements.

The Board of Directors
Borr Drilling Limited
Hamilton, Bermuda

CONTACT:

Questions should be directed to: Magnus Vaaler, CFO, +44 1224 289208

This information was brought to you by Cision http://news.cision.com

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View original content:https://www.prnewswire.com/news-releases/borr-drilling-limited--announces-pricing-of-additional-senior-secured-notes-offering-302637080.html

SOURCE Borr Drilling Limited

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What did Borr Drilling (BORR) announce on December 9, 2025 about new debt?

Borr priced additional 10.375% senior secured notes due 2030 for approximately $165 million.

How will BORR use the proceeds from the $165 million notes offering?

Proceeds, plus a planned equity offering, seller financing and cash, are to fund the acquisition of five premium jack-up rigs and general corporate purposes.

When is settlement of BORR's Additional Notes expected?

Settlement is expected on or about December 19, 2025, subject to customary closing conditions.

Will the Additional Notes have different terms than BORR's existing 2030 notes?

No, the Additional Notes have the same terms and conditions as the existing senior secured notes due 2030.

What are immediate investor risks from BORR's financing announcement on Dec 9, 2025?

Key risks include a 10.375% coupon raising interest cost, potential dilution from a planned equity offering, and closing-condition risk for settlement.

Did BORR state where investors can find more information about the offering?

The company provided contact details and noted filings with the SEC contain additional risk factors and information.