Borr Drilling Plans $1.6 Billion Senior Secured Notes Offering
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 40 minutes ago
0mins
Source: PRnewswire
- Financing Plan: Borr Drilling intends to offer $1.6 billion in senior secured notes, with pricing expected around May 28, 2026, aimed at optimizing capital structure and reducing financing costs.
- Asset Backing: The notes will be guaranteed by the company and certain subsidiaries, secured by most of the rigs and other assets, enhancing investor confidence in the offering.
- Use of Proceeds: Proceeds from the offering will be used to repurchase and redeem maturing 10% senior secured notes and part of the 10.375% notes, which is expected to reduce future interest expenses and improve the company's financial health.
- Market Condition Dependency: The completion of the notes offering and concurrent tender offer is subject to market conditions, demonstrating the company's ability to adapt in the current economic environment.
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Analyst Views on BORR
Wall Street analysts forecast BORR stock price to fall
2 Analyst Rating
1 Buy
1 Hold
0 Sell
Moderate Buy
Current: 5.520
Low
3.60
Averages
4.10
High
4.60
Current: 5.520
Low
3.60
Averages
4.10
High
4.60
About BORR
Borr Drilling Limited is an international drilling contractor providing offshore drilling services to the oil and gas industry. The Company's primary business is the ownership, contracting and operation of jack-up rigs for operations in shallow-water areas (in water depths up to approximately 400 feet), including the provision of related equipment and work crews to conduct oil and gas drilling and workover operations for exploration and production customers. The Company owns approximately 29 rigs. Its rigs include Skald, Groa, Idun, Thor, Norve, Gerd, Natt, Ran, Odin, Gersemi, Grid, Galar, Njord, Prospector 1, Saga, Prospector 5, Mist, Gunnlod, Arabia III, Arabia I, Vali, Arabia II, and others. It operates oil-producing geographies throughout the world, including the Middle East, the North Sea, Latin America, West Africa and South East Asia. The Company contracts its jack-up rigs primarily on a daily rate basis to drill wells for its customers.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Borr Drilling Plans $1.6 Billion Senior Secured Notes Offering
- Financing Initiative: Borr Drilling intends to offer $1.6 billion in senior secured notes, with pricing expected around May 28, 2026, aiming to optimize its capital structure and reduce financing costs, thereby enhancing financial flexibility.
- Asset Backing: The notes will be guaranteed by the company and its subsidiaries, secured by most of the rigs and other assets, ensuring investor security while bolstering the company's credibility in the capital markets.
- Use of Proceeds: The proceeds will be utilized to repurchase and redeem maturing 10% senior secured notes and part of the 10.375% senior secured notes, which is expected to reduce future interest expenses and improve cash flow.
- Market Impact: The success of this notes offering will depend on market conditions, and if completed successfully, it will provide Borr Drilling with essential funding to address future business expansion and market challenges.
See More
Borr Drilling Plans $1.6 Billion Senior Secured Notes Offering
- Financing Plan: Borr Drilling intends to offer $1.6 billion in senior secured notes, with pricing expected around May 28, 2026, aimed at optimizing capital structure and reducing financing costs.
- Asset Backing: The notes will be guaranteed by the company and certain subsidiaries, secured by most of the rigs and other assets, enhancing investor confidence in the offering.
- Use of Proceeds: Proceeds from the offering will be used to repurchase and redeem maturing 10% senior secured notes and part of the 10.375% notes, which is expected to reduce future interest expenses and improve the company's financial health.
- Market Condition Dependency: The completion of the notes offering and concurrent tender offer is subject to market conditions, demonstrating the company's ability to adapt in the current economic environment.
See More
Riley Exploration Permian Shares Decline Amid Oil Price Drop
- Stock Volatility: Riley Exploration Permian (NYSE:REPX) shares fell 3.6% to $37.48 in afternoon trading, reflecting market concerns over a potential U.S.-Iran peace agreement, although the stock is still up 40.9% year-to-date.
- Sector Impact: Borr Drilling (BORR) dropped 16% after missing revenue expectations, exacerbating the overall decline in the oil and gas sector, highlighting the heightened risks faced by offshore drillers with high operational leverage during shifts in market sentiment.
- Oil Price Pressure: WTI crude futures plunged over 5% to below $100 per barrel following comments from President Trump indicating that negotiations with Iran were nearing completion, suggesting that easing tensions in the Middle East could restore oil supply and exert downward pressure on prices.
- Investment Opportunity: Despite the significant volatility in Riley Exploration Permian's stock, which has seen 19 moves greater than 5% in the past year, the current price drop may present a good buying opportunity for investors, particularly as the market tends to overreact to news.
See More
Oil Price Drop Triggers Market Volatility
- Oil Risk Premium Unwound: Reports of a potential U.S.-Iran peace resolution led to a drop in crude oil prices, unwinding the $15-20 per barrel 'Hormuz risk' premium that had been embedded since April, negatively impacting energy stocks.
- Borr Drilling's Stock Plunge: Borr Drilling (BORR) fell 16% after missing revenue expectations, exacerbating the decline in the high-beta sector, indicating increased market sensitivity to oil price fluctuations.
- Other Energy Stocks Decline: SM Energy (NYSE:SM) dropped 5%, Transocean (NYSE:RIG) fell 5.6%, and Valaris (NYSE:VAL) decreased by 5.8%, reflecting a general bearish sentiment in the energy sector, prompting caution among investors.
- Valaris Stock Volatility: Valaris has experienced 26 moves greater than 5% in the past year; despite today's decline, the market has not altered its fundamental perception, with a 94.5% increase year-to-date, indicating long-term investment potential.
See More
Borr Drilling Reports Disappointing Q1 Results
- Revenue Growth Underwhelming: Borr Drilling reported Q1 revenue of $247 million, a 14% year-over-year increase, yet it fell short of analysts' expectations of over $257 million, indicating market disappointment in growth potential.
- Deepening Net Loss: The company's net loss widened to $29 million ($0.09 per share) from a $16.9 million loss a year ago, reflecting the impact of high operational costs and a non-cash credit loss provision.
- Drilling Project Delays: The Odin rig's operations are delayed until late June due to contract preparation and regulatory approval issues, resulting in no revenue generation during this period and requiring an additional $10 million in preparatory expenses, further straining finances.
- High Utilization Rate: Despite these challenges, Borr's technical utilization rate stands at 99.4%, indicating strong drilling demand that may persist in the current high oil price environment, potentially offering hope for future performance.
See More
Borr Drilling Reports Deeper Net Loss Despite Revenue Growth
- Revenue Growth Underwhelming: Borr Drilling reported first-quarter revenue of $247 million, a 14% year-over-year increase, yet it fell short of analysts' expectations of over $257 million, indicating investor disappointment in its growth prospects.
- Deepening Net Loss: The company's net loss widened significantly from $16.9 million last year to $29 million ($0.09 per share), primarily due to expenses related to the acquisition of five rigs and an $8.4 million noncash credit loss provision, reflecting increased financial strain.
- Operational Delays Impact: The operational start of the Odin rig has been delayed to late June, originally scheduled for February to serve client Cantium, resulting in no revenue generation during this period and requiring an additional $10 million in preparatory expenses, further exacerbating financial burdens.
- High Utilization Rate: Despite these challenges, Borr's technical utilization rate stands at 99.4%, indicating strong drilling demand that is expected to persist in the current high oil price environment, potentially providing long-term growth opportunities for the company.
See More
Borr Drilling Plans $1.6 Billion Senior Secured Notes Offering
- Financing Initiative: Borr Drilling intends to offer $1.6 billion in senior secured notes, with pricing expected around May 28, 2026, aiming to optimize its capital structure and reduce financing costs, thereby enhancing financial flexibility.
- Asset Backing: The notes will be guaranteed by the company and its subsidiaries, secured by most of the rigs and other assets, ensuring investor security while bolstering the company's credibility in the capital markets.
- Use of Proceeds: The proceeds will be utilized to repurchase and redeem maturing 10% senior secured notes and part of the 10.375% senior secured notes, which is expected to reduce future interest expenses and improve cash flow.
- Market Impact: The success of this notes offering will depend on market conditions, and if completed successfully, it will provide Borr Drilling with essential funding to address future business expansion and market challenges.
See More
Borr Drilling Plans $1.6 Billion Senior Secured Notes Offering
- Financing Plan: Borr Drilling intends to offer $1.6 billion in senior secured notes, with pricing expected around May 28, 2026, aimed at optimizing capital structure and reducing financing costs.
- Asset Backing: The notes will be guaranteed by the company and certain subsidiaries, secured by most of the rigs and other assets, enhancing investor confidence in the offering.
- Use of Proceeds: Proceeds from the offering will be used to repurchase and redeem maturing 10% senior secured notes and part of the 10.375% notes, which is expected to reduce future interest expenses and improve the company's financial health.
- Market Condition Dependency: The completion of the notes offering and concurrent tender offer is subject to market conditions, demonstrating the company's ability to adapt in the current economic environment.
See More
Riley Exploration Permian Shares Decline Amid Oil Price Drop
- Stock Volatility: Riley Exploration Permian (NYSE:REPX) shares fell 3.6% to $37.48 in afternoon trading, reflecting market concerns over a potential U.S.-Iran peace agreement, although the stock is still up 40.9% year-to-date.
- Sector Impact: Borr Drilling (BORR) dropped 16% after missing revenue expectations, exacerbating the overall decline in the oil and gas sector, highlighting the heightened risks faced by offshore drillers with high operational leverage during shifts in market sentiment.
- Oil Price Pressure: WTI crude futures plunged over 5% to below $100 per barrel following comments from President Trump indicating that negotiations with Iran were nearing completion, suggesting that easing tensions in the Middle East could restore oil supply and exert downward pressure on prices.
- Investment Opportunity: Despite the significant volatility in Riley Exploration Permian's stock, which has seen 19 moves greater than 5% in the past year, the current price drop may present a good buying opportunity for investors, particularly as the market tends to overreact to news.
See More
Oil Price Drop Triggers Market Volatility
- Oil Risk Premium Unwound: Reports of a potential U.S.-Iran peace resolution led to a drop in crude oil prices, unwinding the $15-20 per barrel 'Hormuz risk' premium that had been embedded since April, negatively impacting energy stocks.
- Borr Drilling's Stock Plunge: Borr Drilling (BORR) fell 16% after missing revenue expectations, exacerbating the decline in the high-beta sector, indicating increased market sensitivity to oil price fluctuations.
- Other Energy Stocks Decline: SM Energy (NYSE:SM) dropped 5%, Transocean (NYSE:RIG) fell 5.6%, and Valaris (NYSE:VAL) decreased by 5.8%, reflecting a general bearish sentiment in the energy sector, prompting caution among investors.
- Valaris Stock Volatility: Valaris has experienced 26 moves greater than 5% in the past year; despite today's decline, the market has not altered its fundamental perception, with a 94.5% increase year-to-date, indicating long-term investment potential.
See More
Borr Drilling Reports Disappointing Q1 Results
- Revenue Growth Underwhelming: Borr Drilling reported Q1 revenue of $247 million, a 14% year-over-year increase, yet it fell short of analysts' expectations of over $257 million, indicating market disappointment in growth potential.
- Deepening Net Loss: The company's net loss widened to $29 million ($0.09 per share) from a $16.9 million loss a year ago, reflecting the impact of high operational costs and a non-cash credit loss provision.
- Drilling Project Delays: The Odin rig's operations are delayed until late June due to contract preparation and regulatory approval issues, resulting in no revenue generation during this period and requiring an additional $10 million in preparatory expenses, further straining finances.
- High Utilization Rate: Despite these challenges, Borr's technical utilization rate stands at 99.4%, indicating strong drilling demand that may persist in the current high oil price environment, potentially offering hope for future performance.
See More
Borr Drilling Reports Deeper Net Loss Despite Revenue Growth
- Revenue Growth Underwhelming: Borr Drilling reported first-quarter revenue of $247 million, a 14% year-over-year increase, yet it fell short of analysts' expectations of over $257 million, indicating investor disappointment in its growth prospects.
- Deepening Net Loss: The company's net loss widened significantly from $16.9 million last year to $29 million ($0.09 per share), primarily due to expenses related to the acquisition of five rigs and an $8.4 million noncash credit loss provision, reflecting increased financial strain.
- Operational Delays Impact: The operational start of the Odin rig has been delayed to late June, originally scheduled for February to serve client Cantium, resulting in no revenue generation during this period and requiring an additional $10 million in preparatory expenses, further exacerbating financial burdens.
- High Utilization Rate: Despite these challenges, Borr's technical utilization rate stands at 99.4%, indicating strong drilling demand that is expected to persist in the current high oil price environment, potentially providing long-term growth opportunities for the company.
See More
