Borr Drilling prices US$250m CB refi
In a straightforward financing, Borr Drilling took an opportunity to lower its borrowing costs late on Tuesday with US$260m from a new seven-year convertible bond issue to repurchase more expensive existing CBs.
After an earlier wall-cross, joint bookrunners Morgan Stanley and Clarksons Securities priced the new CBs at 3.5%, up 40%, toward the aggressive ends of the 3.375%–3.875% and 35%–40% terms marketed overnight.
Borr is using US$224.5m of the proceeds to buy back US$195.2 of the US$239.4m principal of a 5% CB issue maturing in 2028 that is convertible at US$6.94.
The offshore drilling rig operator’s NYSE-listed shares fell just 3.5% post-pricing to US$5.50 at Wednesday's close.
The company returned to US ECM after selling US$84m of its common stock in December at US$4 to help fund its purchase of five new rigs and repay debt.