HAMILTON, Bermuda — Borr Drilling Ltd. has signed a binding letter of intent with an undisclosed third party for the sale of three high-specification units under construction with Keppel FELS shipyard, namely Tivar, Huldra and Heidrun (the transaction rigs).
The sale transaction is subject to customary closing conditions and procedures and is expected to conclude within 30 days. The transaction rigs are expected to be employed by the prospective owner in a captive market and represent limited competition to Borr Drilling’s fleet.
The total consideration for the transaction is $320 million, which will be used to pay the delivery installments of the three rigs and eliminates the associated activation costs that would have applied in the future.
This transaction forms an integral part of the refinancing and optimization of the capital structure of Borr, which the company is working to complete as it significantly reduces its capital commitments. The company continues to actively engage with its creditors with a view to completing its refinancing and expects to update the market further on the progress in the coming days.
Upon conclusion of the sale of the transaction rigs, the company’s fleet will comprise 23 delivered rigs (of which 20 are contracted) and two rigs under construction with Keppel FELS. Borr aims to have all 23 delivered rigs contracted by year-end 2022.