Borr Drilling Prices $260 Million in Convertible Notes for Debt Refinancing

Borr Drilling Ltd. (BORR) has priced a private offering of $260 million in 3.50% convertible senior notes due 2033, targeting qualified institutional buyers. The offering is expected to close on or about April 17. The move serves as a strategic liability management exercise. The company intends to utilize the proceeds to repurchase $195.2 million of its existing 2028 convertible bonds for a total of $224.5 million, including accrued interest. Any remaining funds will be allocated toward general corporate purposes. The notes carry an initial conversion rate of 125 shares per $1,000 principal amount, which equates to an initial conversion price of approximately $8 per share. Interest on the notes will be paid semi-annually starting November 1, with a final maturity date of May 1, 2033. To manage potential over-allotments, the company has granted initial purchasers an option to buy up to an additional $40 million of notes within a 13-day period. Market reaction was immediate, with Borr Drilling shares closing 4.36% lower at $5.70 on the New York Stock Exchange. While the stock faced downward pressure, the conversion price of $8 is set significantly above the current trading price, reflecting the company's long-term valuation targets.