Borr Drilling Limited - Completes Offering of Convertible Senior Notes due 2033

Borr Drilling (NYSE: BORR) completed a $300 million offering of convertible senior notes due May 1, 2033, including a $40 million overallotment.

Rhea-AI Summary

Borr Drilling (NYSE: BORR) completed a $300 million offering of convertible senior notes due May 1, 2033, including a $40 million overallotment. The Notes bear interest at 3.50% payable semi-annually beginning November 1, 2026, and are convertible at 125.0000 shares per $1,000 (≈ $8.00/share).

The company intends to use proceeds to repurchase its 2028 convertible bonds and for general corporate purposes, and agreed to repurchase $195.2 million aggregate principal of the 2028 bonds.

Positive

• Issued $300 million of convertible senior notes due 2033
• Conversion price set at ≈ $8.00 per share (>40% premium)
• Agreed repurchase of $195.2 million of 2028 convertible bonds

Negative

• Notes are senior, unsecured, adding long-term debt through 2033
• Conversion could dilute shareholders if converted into common shares

Argus Apr 17 session

+2.39% close to close Open Argus

Details

News Market Reaction – BORR

On Apr 17, the day this news came out, BORR closed 2.39% above the previous close.

Data tracked by StockTitan Argus for the Apr 17 session.

Key Figures

Convertible notes size: $300 million Over-allotment portion: $40 million Coupon rate: 3.50% per annum +5 more

Convertible notes size

$300 million

Aggregate principal amount of 2033 convertible senior notes

Over-allotment portion

$40 million

Notes sold via initial purchasers’ full over-allotment option

Coupon rate

3.50% per annum

Interest on 2033 convertible senior notes, paid semi-annually

Maturity date

May 1, 2033

Maturity of the new convertible senior notes

Conversion rate

125.0000 shares per $1,000

Initial conversion rate into BORR common shares

Initial conversion price

$8.00 per share

Implied by 125 shares per $1,000 principal

Reference share price

$5.70

BORR NYSE close on April 14, 2026 used for conversion premium

2028 bonds repurchased

$195.2 million

Aggregate principal agreed to be repurchased of 2028 convertible bonds

Previous Offering Reports

5 past events · Latest: Apr 14

Same Type 5 events

1. Apr 14

   Convertible notes offering

   24h Move

   -3.5%

   Proposed $250M 2033 convertible notes mainly to refinance 2028 converts.

2. Dec 10

   Equity offering settlement

   24h Move

   -1.1%

   Settlement of 21M-share equity raise at $4.00 to fund five rigs.

3. Dec 09

   Debt notes offering

   24h Move

   +7.4%

   Priced 10.375% 2030 secured notes for ~$165M to support rig acquisition.

4. Dec 09

   Equity offering pricing

   24h Move

   +7.4%

   Priced 21M-share public equity offering at $4.00 for growth funding.

5. Dec 08

   Equity offering launch

   24h Move

   +7.4%

   Announced 21M-share equity offering tied to five jack-up rig acquisition.

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

Key Terms

convertible senior notes, aggregate principal amount, conversion rate, over-allotments

4 terms

convertible senior notes financial

"completed its previously announced offering of convertible senior notes due 2033"

Convertible senior notes are a type of loan that a company issues to investors, which can be turned into company shares later on. They are called "senior" because they are paid back before other debts if the company runs into trouble. This allows investors to earn interest like a loan but also have the chance to own part of the company if its value rises.

aggregate principal amount financial

"The Company sold $300 million aggregate principal amount of the Notes"

The aggregate principal amount is the total amount of money borrowed through a bond or loan that the borrower promises to repay. It’s like the original price tag on a loan or bond, showing how much money is involved in the deal. This number matters because it indicates the size of the debt and helps investors understand the scale of the borrowing.

conversion rate financial

"The conversion rate for the Notes will initially equal 125.0000 common shares"

Conversion rate is the proportion of items, people or contracts that take a desired action out of the total possible — for example the share of website visitors who make a purchase, or the number of convertible bonds that are exchanged for shares. Investors care because it measures how effectively a business or financial instrument turns opportunity into real outcomes, like sales or share issuance, which directly affects revenue, cash flow and ownership dilution.

over-allotments financial

"additional Notes to cover over-allotments in connection with the offering"

An over-allotment is a temporary extra batch of shares that the underwriters of a stock offering are allowed to sell beyond the original amount, with the right to buy those shares back later. Think of it as spare tickets sold to meet demand and then reclaimed if needed to keep the market orderly; it helps stabilize the stock price after an offering and can affect short-term supply and potential dilution, which matters to investors tracking price and ownership stakes.

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

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google

Add on Google Not now

HAMILTON, Bermuda, April 17, 2026 /PRNewswire/ -- Borr Drilling Limited (NYSE and Euronext Growth Oslo: BORR) ("Borr Drilling" or the "Company") today announced that is has completed its previously announced offering of convertible senior notes due 2033 (the "Notes"). The Company sold $300 million aggregate principal amount of the Notes, including $40 million aggregate principal amount of the Notes sold pursuant to the initial purchasers' exercise in full of their option to purchase additional Notes to cover over-allotments in connection with the offering.

The Notes are senior, unsecured obligations of the Company and mature on May 1, 2033. They bear interest at a rate of 3.50% per annum, which is payable semi-annually, beginning on November 1, 2026. The Notes are convertible into the Company's common shares, cash, or a combination of shares and cash, at the Company's election. The conversion rate for the Notes will initially equal 125.0000 common shares per $1,000 principal amount of the Notes, which is equivalent to an initial conversion price of approximately $8.00 per common share. Such initial conversion price represents a conversion premium of over 40% with reference to the closing price of the Company's common shares of $5.70 on the New York Stock Exchange on April 14, 2026. The conversion rate is subject to adjustment upon the occurrence of certain events.

The Company intends to use the proceeds from the sale of the Notes to repurchase its existing convertible bonds due 2028 (the "2028 Convertible Bonds") and for general corporate purposes.

In connection with the offering, the Company has agreed with certain holders of the 2028 Convertible Bonds to repurchase $195.2 million aggregate principal amount of the 2028 Convertible Bonds.

About Borr Drilling
Borr Drilling Limited is an international drilling contractor incorporated in Bermuda in 2016 and listed on the New York Stock Exchange since July 31, 2019 and on Euronext Growth Oslo since December 19, 2025 under the ticker "BORR". The Company owns and operates jack-up rigs of modern and high specification designs and provides services focused on the shallow-water segment to the offshore oil and gas industry worldwide. Please visit our website at www.borrdrilling.com.

Forward-Looking Statements
This press release and related discussions include forward-looking statements made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements do not reflect historical facts and may be identified by words such as "anticipate", "believe", "continue", "estimate", "expect", "intends", "may", "should", "will", "ensure", "likely", "aim", "plan", "guidance" and similar expressions and include statements regarding the offering of convertible notes, and intended use of proceeds including the repurchase of 2028 Convertible Bonds and other non-historical statements. Such forward-looking statements are subject to risks, uncertainties, contingencies and other factors that could cause actual events to differ materially from the expectations expressed or implied by the forward-looking statements included herein, including risks related to the offering of convertible notes and the use of proceeds, and other risks and uncertainties, including those described in our most recent annual report on Form 20-F for the year ended December 31, 2025 and our other filings with the Securities and Exchange Commission. 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. These forward-looking statements are made only as of the date of this release. We do not undertake to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.

The securities referred to herein have not been and will not be registered under the Securities Act of 1933 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 Securities Act of 1933, or an exemption from the registration requirements of that act is available.

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

https://news.cision.com/borr-drilling-limited/r/borr-drilling-limited---completes-offering-of-convertible-senior-notes-due-2033,c4336625

View original content:https://www.prnewswire.com/news-releases/borr-drilling-limited---completes-offering-of-convertible-senior-notes-due-2033-302746047.html

SOURCE Borr Drilling Limited

FAQ

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

What did BORR announce about the convertible notes on April 17, 2026?

Borr completed a $300 million convertible senior notes offering due May 1, 2033. According to the company, the Notes include a $40 million overallotment and bear 3.50% interest, payable semi-annually starting November 1, 2026.

How will BORR use proceeds from the $300 million notes offering?

The company intends to use proceeds to repurchase its 2028 convertible bonds and for general corporate purposes. According to the company, it agreed to repurchase $195.2 million aggregate principal of the 2028 bonds.

What is the conversion rate and initial conversion price for BORR's 2033 notes?

The Notes convert at 125.0000 shares per $1,000 principal, equal to an initial conversion price of about $8.00 per share. According to the company, the price reflects a conversion premium of over 40% to the April 14, 2026 close.

When do BORR's new convertible notes mature and when is interest paid?

The Notes mature on May 1, 2033 and pay interest at 3.50% per annum. According to the company, interest is payable semi-annually beginning on November 1, 2026.

Will BORR's 2033 notes cause shareholder dilution if converted?

Yes, conversion could dilute existing shareholders if the company elects to settle in common shares. According to the company, conversions may be settled in shares, cash, or a combination at its election.