Borr Drilling announces CEO succession plan and expanded credit facility

Borr Drilling (BORR) has received commitments from certain commercial banks to: 1) increase existing super senior RCF to $200M; 2) reallocate the existing $45M Guarantee Facility from super senior to senior secured, freeing up $45M of capacity under the SSRCF; and 3) add a new $35M senior secured RCF, subject to a $100M equity raise. Additionally, the company has obtained more favorable terms on the financial covenants in these facilities, including a reduction in the minimum liquidity covenant. The changes to the facilities, together with a proposed $100M equity raise, are expected to increase the company’s available liquidity by more than $200M. Borr has also reached a unanimous decision to appoint Bruno Morand as successor to CEO Patrick Schorn, effective September 1. At the time of the transition, Schorn will become Executive Chairman of the Board, while current Chairman Tor Olav Troim will continue to serve as a Director of the Board. Additionally, current Director Dan Rabun – former CEO and Chairman at Ensco – will become Lead Independent Director. Morand, who has served as Chief Commercial Officer at the company since 2023, is a 20-year veteran of the offshore drilling industry. He originally joined Borr in 2017 and throughout his time at the company has played an active role with the company’s global portfolio of clients and strategic partners. Additionally, Troim announced the nomination of Thiago Mordehachvili, Founder and Chief Investment Officer of Granular Capital, holding more than 19% of the company’s shares, to join the Board as a Director, subject to approval of shareholders to increase the number of board members. Jason Crowe will succeed Morand as SVP Commercial, effective September 1. All other members of the leadership team remain unchanged.