Borr Drilling stock tumbles after announcing $100 million equity raise

Published 02/07/2025, 21:40
© Reuters.

Investing.com -- Borr Drilling Limited (NYSE:BORR) stock plunged 10% after the offshore drilling contractor announced plans for a $100 million equity raise alongside changes to its credit facilities.

The company disclosed that it has secured commitments from commercial banks to increase its existing super senior revolving credit facility to $200 million and add a new $35 million senior secured RCF, contingent upon completing the equity raise. Borr also plans to reallocate its existing $45 million guarantee facility from super senior to senior secured status.

These financial maneuvers, combined with the proposed equity offering, are expected to boost the company’s available liquidity by more than $200 million. The additional funds would support Borr’s long-term strategy execution and potential growth opportunities, including industry consolidation.

Alongside the financial restructuring, Borr announced leadership changes set for September 2025. Bruno Morand, the company’s current Chief Commercial Officer, will succeed Patrick Schorn as CEO. Schorn will transition to Executive Chairman, while current Chairman Tor Olav Trøim will remain on the board as a director.

The company also revealed plans to nominate Thiago Mordehachvili, founder of Granular Capital Ltd., which holds over 19% of Borr’s shares, to join its board following a Special General Meeting scheduled for August 2025.

Borr Drilling specializes in shallow water jackup drilling rigs and has positioned itself as a leading international contractor in this segment.

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