The Financial Supervisory Authority of Norway has approved the listing of new shares of Borr Drilling issued as part of a $650 million equity offering meant to partly finance the purchase of nine jack-up rigs.
To remind, Borr Drilling announced on October 9 that it offered up to 162,500,000 new shares, representing 51.5 percent of the outstanding shares of the company, under subscription price of $4.00 per share in order to raise gross proceeds of up to $650 million. The intention was to partly secure financing for the acquisition of nine jack-up rigs from PPL Shipyard.
Borr Drilling’s acquisition of the rigs will increase the company’s fleet to a total of 26 jack-up rigs once all rigs under construction at the shipyard have been delivered. Total consideration for the nine-rig buy was around $1.3 billion.
The company said on Thursday that, since they were issued, the new shares were traded on Merkur Markets under a separate ISIN.
As a result of the approval, the new shares will be tradable on Oslo Børs from October 20, under the ticker “BDRILL.” The shares will be converted to the company’s original ISIN number in the VPS system from October 24.
When it comes to Borr’s current business, it is also worth noting that the company’s CEO recently spoke to Offshore Energy Today about the company’s new drilling contract model in the jack-up market, following the driller’s pact with the world’s largest oilfield services company, Schlumberger, to offer integrated, performance-based drilling contracts in the offshore jack-up market.
Offshore Energy Today Staff