Borr Drilling (BORR) Completes $84M Offering, S&P Downgrades to ‘B’

In a abstracted update, connected December 9, the institution received a recognition standing downgrade from S&P Global Ratings to ‘B’ with a unchangeable outlook. This enactment besides included lowering the standing connected the company’s elder secured notes to ‘B+’. According to S&P, the downgrade was triggered by Borr’s statement to get 5 premium jack-up rigs from Noble Corporation PLC for $360 million.

The $84 cardinal from the nationalist offering was utilized to money this acquisition. And it was supplemented by a $165 cardinal issuance of elder secured notes astatine 10.375% involvement owed successful 2030. The institution besides relied connected seller financing and currency reserves. And aft the acquisition, Borr’s nett indebtedness stands astatine astir $2 billion. S&P projects the debt-to-EBITDA ratio to enactment precocious astatine 4.5x to 5.0x done 2025-2026, which volition hinder efforts to amended fiscal flexibility amid volatile lipid prices.

Borr Drilling Limited (NYSE:BORR) is an planetary drilling contractor that owns and operates a modern fleet of jack-up rigs utilized for shallow-water exploration and production. Its operations span offshore regions including the Americas, Europe, Africa, and Asia.

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