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HAMILTON, Bermuda - Borr Drilling Limited (NYSE:BORR), an offshore drilling contractor with a market capitalization of $501 million, has secured commitments from commercial banks to increase its available liquidity by more than $200 million, while also announcing a leadership transition, according to a press release statement issued Wednesday.
The offshore drilling contractor plans to increase its existing super senior revolving credit facility to $200 million, reallocate a $45 million guarantee facility, and add a new $35 million senior secured revolving credit facility. These financial arrangements are contingent upon a proposed $100 million equity raise that the company announced separately. According to InvestingPro data, the company operates with a total debt of $2.12 billion and maintains a current ratio of 1.25, suggesting tight but manageable liquidity. InvestingPro analysis indicates the stock is currently trading below its Fair Value.
The company also revealed that Bruno Morand, currently Chief Commercial Officer, will succeed Patrick Schorn as Chief Executive Officer effective September 1, 2025. Schorn will transition to Executive Chairman of the Board of Directors, while current Chairman Tor Olav Trøim will remain as a Director. With annual revenue of $993.2 million and a substantial dividend yield of 12.31%, the leadership transition comes at a crucial time. Get deeper insights into Borr Drilling’s financial health and growth prospects with InvestingPro, which offers exclusive analysis and 14 additional ProTips for informed investment decisions.
"With decades of experience in the industry, he brings the optimal mix of continuity and fresh perspectives," Trøim said regarding Morand’s appointment.
The company also announced that Jason Crowe will succeed Morand as SVP Commercial on the same date, while other leadership team members will remain unchanged.
Additionally, Borr plans to nominate Thiago Mordehachvili, founder of Granular Capital Ltd., which holds more than 19% of the company’s shares, to join the Board as a Director. This nomination is subject to shareholder approval at a Special General Meeting scheduled for August 6, 2025.
The financial restructuring aims to strengthen the company’s balance sheet to support its long-term strategy and potential growth opportunities, according to the press release.
In other recent news, Borr Drilling Limited has announced plans to raise $100 million through a public offering of approximately 50 million shares. The proceeds from this offering are intended for general corporate purposes, which may include servicing debt, capital expenditures, and funding working capital. The offering will occur in two settlements, with the first involving 30 million shares expected around July 7, 2025, and the second settlement of 20 million shares contingent on shareholder approval at a special general meeting on August 6. Notably, several company insiders have expressed their intentions to participate in the offering, including Tor Olav Trøim, who plans to subscribe for $10 million worth of shares through Drew Holding Ltd. Additionally, CEO Patrick Schorn and Bruno Morand intend to invest $1 million and $300,000, respectively. DNB Carnegie, Clarksons Securities, Citigroup, and Goldman Sachs & Co. LLC are serving as joint bookrunners for this offering. The share offering is being made under an effective shelf registration statement filed with the Securities and Exchange Commission. If the special general meeting condition is not met, the second settlement’s shares will not be issued, though this will not affect the first settlement.
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