Borr Drilling is making first convertible offering in capital markets as the Tor Olav Troim-backed company seeks to fund the acquisition of five new drilling rigs.
The Oslo-listed Borr will sell $350m in principal amount of the convertibles, which will have a five-year tenor.
Borr expects to pay a coupon in the range of 3.5% to 4.25% per year payable semi-annually. The bonds will have a conversion premium of 35% to 40% over the price per share at which shares have been sold in a concurrent equity offering.
The company provided few details on the use of proceeds save for "the purchase of five rigs from an Asian shipyard."
As TradeWinds reported, Singapore's Keppel Shipyard said it was selling five jack-up rigs that had originally been ordered by Transocean.
The total consideration for the rigs is expected to be $720m. Borr has secured optional delivery financing of $432m and intends to enter into a $200m bank facility.
The bonds will be issued and redeemed at 100% of their principal amount of $200,000 and will, unless previously redeemed, converted or purchased and cancelled, mature in 2023.
