Borr in New Financing Deal for Newbuild Jack-Up Rig

OE Staff
Monday, February 17, 2020

Jack-up rig operator Borr Drilling has entered into a new financing arrangement for the newbuild jack-up rig Tivar.

The drilling rig of the KFELS Super B Bigfoot Class is under construction at KFELS shipyard in Singapore and set for delivery in July 2020.

Borr's existing $50 million bank delivery financing for the rig will be replaced with a new US$100 million take out facility maturing on December 31, 2021. 

As part of the agreement, the delivery of the jack-up rigs Vale and Var are conditional upon the full repayment of the facility or can be carried out 180 days after an early repayment of the financing.

The Company's total remaining newbuild capex is, as of Monday, $707 million, of which US$620 million is now fully financed, and the new arrangement has reduced the unfunded delivery capex for 2020 by US$85 million.

"The $100 million in financing and delivery date amendments will, together with the adjustments in the bank agreements achieved in December 2019, substantially improve the company's liquidity position in 2020 and 2021," Borr said Monday.

Categories: Drilling Industry News Europe Rigs

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