Tor Olav Troim’s Borr Drilling has completed a successful $350m trip to the bond market.
Oslo-listed Borr issued the unsecured convertible paper to help pay for five rigs from Keppel FELS shipyard.
The $745m transaction is backed by $432m in optional delivery financing and $200m in bank debt.
Rune Magnus Lundetrae, chief financial officer of Borr Drilling, explains it has previously raised $1.9bn in equity and to have a mix of bond debt and equity is good for the company.
The $350m was raised overnight with Lundetrae explains the convertible bond was attractive for investors given it offers them further potential upside in the Borr Drilling growth story.
The company has indicated in previous presentations it is nearing the end of its acquisition phase. In its bond presentation this week it said the “final” building blocks are coming together, with a unique company having been constructed in 17 months
“I think we have picked up assets that were distressed. When we look we don’t see more assets to buy,” Lundetrae said.
“We have not been growing just to grow, we are growing because we think it’s good business,” he added, noting the company is happy with its entry point in the market.
Citigroup, Clarksons Platou Securities, DNB Markets and Goldman Sachs International handled the offering.
Borr started with the purchase of two Hercules Offshore rigs, before major transactions with Transocean. PPL Shipyard, Paragon Offshore and the newbuilding deal.
With the sale of some older units also part of the picture, it has a fleet of 29 jack-ups.
Troim has a stake of around 8% in the company, with Schlumberger boasting a holding of around 14%.
