Borr Drilling prices $102.5 million share offering at $2.05 per share

HAMILTON, Bermuda - Offshore drilling contractor Borr Drilling Limited (NYSE:BORR), with a market capitalization of approximately $500 million, has priced its previously announced offering of 50 million common shares at $2.05 per share, raising gross proceeds of $102.5 million, according to a press release statement. The company’s stock has experienced significant volatility, falling over 47% in the past six months. According to InvestingPro analysis, the company currently appears undervalued based on its Fair Value estimates.

The company plans to use the proceeds for general corporate purposes, including debt service, capital expenditures, and funding working capital. This capital raise comes as the company manages a substantial debt burden of $2.1 billion, with a debt-to-equity ratio of 2.17. Despite these challenges, InvestingPro data shows the company maintains a healthy current ratio of 1.25, indicating adequate short-term liquidity.

The share delivery is scheduled in two phases: 30 million shares will be delivered around July 7, 2025, with the remaining 20 million shares expected to be delivered around August 7, 2025. The second tranche is contingent upon shareholder approval at a special general meeting scheduled for August 6, 2025, to authorize an additional 50 million shares.

DNB Carnegie, Clarksons Securities, Citigroup, and Goldman Sachs & Co. LLC are serving as joint bookrunners for the offering.

The offering was made under an effective shelf registration statement filed with the Securities and Exchange Commission on April 11, 2025.

If the special general meeting condition is not met, the second tranche of 20 million shares will not be issued, though this would not affect the first settlement of 30 million shares.

The share offering represents a significant capital raise for Borr Drilling, which specializes in offshore jack-up drilling rigs. The company has demonstrated profitability over the last twelve months, with a gross profit margin of nearly 55% and revenue of $993 million. For deeper insights into Borr Drilling’s financial health and future prospects, investors can access comprehensive analysis through InvestingPro’s detailed research reports, available for over 1,400 US-listed companies.

In other recent news, Borr Drilling Limited announced plans for a $100 million equity raise, with the company aiming to issue approximately 50 million shares. The proceeds from this share offering are intended for general corporate purposes, including debt service and capital expenditures. This move is part of a broader financial restructuring strategy, which also includes securing commitments from commercial banks to increase its super senior revolving credit facility to $200 million and adding a new $35 million senior secured revolving credit facility. These financial maneuvers are expected to enhance Borr’s liquidity by over $200 million, supporting its long-term strategy and potential growth opportunities. Additionally, the company announced a leadership transition, with Bruno Morand set to become CEO in September 2025, succeeding Patrick Schorn, who will transition to Executive Chairman. In governance news, Borr plans to nominate Thiago Mordehachvili, founder of Granular Capital Ltd., to its board, pending shareholder approval. This nomination is significant as Granular Capital holds over 19% of Borr’s shares. The proposed changes underscore Borr’s strategic efforts to strengthen its financial position and leadership team for future growth.

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