Borr Drilling Raises $260 Million in New 2033 Convertible Notes to Refinance 2028 Bonds

Borr Drilling ( (BORR) ) just unveiled an update.

Borr Drilling has priced $260 million of senior unsecured convertible notes due 2033 for sale to qualified institutional buyers, with an additional $40 million overallotment option, bearing a 3.5% coupon and an initial conversion price of about $8.00 per share. The company will use the proceeds primarily to repurchase its existing 2028 convertible bonds, including a negotiated buyback of $195.2 million at $224.5 million, a move that reshapes its capital structure and could spur significant trading in its shares as hedged bondholders unwind positions, potentially affecting the stock price and the effective conversion economics of the new notes.

The new notes are convertible into shares, cash or a mix at Borr Drilling’s election and include standard redemption and fundamental change protections for investors, offering flexibility to the company while preserving bondholder rights. By extending debt maturities and refinancing higher-cost obligations, Borr Drilling is seeking to strengthen its balance sheet and improve financial flexibility, a strategic step that may support its positioning in the cyclical offshore drilling market and influence returns for both creditors and equity holders.

The most recent analyst rating on (BORR) stock is a Hold with a $5.45 price target. To see the full list of analyst forecasts on Borr Drilling stock, see the BORR Stock Forecast page.

More about Borr Drilling

Borr Drilling Limited is an international offshore drilling contractor incorporated in Bermuda and listed on the NYSE and Euronext Growth Oslo under the ticker BORR. The company owns and operates modern, high-specification jack-up rigs and provides shallow-water drilling services to the global offshore oil and gas industry.

Average Trading Volume: 7,357,631

Technical Sentiment Signal: Buy

Current Market Cap: $1.82B

See more data about BORR stock on TipRanks’ Stock Analysis page.