Sembcorp Marine's subsidiary, PPL Shipyard has reached definitive agreements with offshore drilling company Borr Drilling to defer its receivables from Borr Drilling from 2023 to 2025.
The definitve agreements follow agreements in principle announced previously. The deferment will result in Borr Drilling making earlier and higher amounts of interest payments and partial principal repayments to PPLS from 2022 to 2024.
Borr Drilling has also fulfilled required conditions including the raising of certain amounts of equity and completion of refinancing of its other secured creditors.
The deferment deals are related to Borr Drilling's rig orders from October 2017 when Borr Drilling agreed to buy from PPL Shipyard nine Pacific Class 400 jack-up drilling rigs at an aggregate consideration of approximately US$1.3 billion.
Borr Drilling made an upfront down payment of about US$0.5 billion. The balance amount of approximately US$0.8 billion (“Balance Amount”) was to be paid within five years from the respective delivery dates of the rigs.
Borr Drilling took delivery of all nine rigs progressively from November 2017 to January 2019.
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