Borr Drilling Raises $300 Million in 2033 Convertible Notes to Refinance 2028 Bonds

Borr Drilling ( (BORR) ) has issued an announcement.

Borr Drilling Limited has completed a $300 million offering of senior unsecured convertible notes due 2033, including $40 million issued via the underwriters’ over-allotment option. The notes carry a 3.50% annual coupon, payable semi-annually, and are initially convertible at $8.00 per share, implying a conversion premium of more than 40% to the company’s recent NYSE closing price.

The company plans to use the proceeds primarily to repurchase its existing 2028 convertible bonds and for general corporate purposes, and has already agreed to buy back $195.2 million of those securities. The transaction extends Borr Drilling’s debt maturity profile and may lower its near-term refinancing risk, while potentially diluting shareholders over time if the new notes are converted into equity at the premium valuation.

The most recent analyst rating on (BORR) stock is a Hold with a $6.25 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 New York Stock Exchange 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, targeting demand for efficient, contemporary assets in that segment.

Average Trading Volume: 7,636,311

Technical Sentiment Signal: Buy

Current Market Cap: $1.69B

See more insights into BORR stock on TipRanks’ Stock Analysis page.