Hamilton, Bermuda, December 19, 2016 – Borr Drilling Limited (“Borr Drilling or the Company”), formerly Magni Drilling Limited, is pleased to announce the successful completion of its USD155 million equity issue at USD2/share. The private placement was completed with support from renowned institutional investors and private capital with significant experience and successful track record from investing in the drilling industry. The proceeds from the placement will be used to finance the acquisition of two modern jack-ups rigs from Hercules Offshore, the Hercules Resilience and Hercules Triumph. The total consideration for the two rigs is USD130 million.
Borr Drilling’s ambition is to acquire and operate modern drilling assets purchased at a significant discount to the new build cost price. The industry continues to experience significant overcapacity and historical low activity level. We are building a platform with modern equipment, an experienced management team and a robust capital structure in order to be able to capitalise on the opportunities that will arise in this market environment.
Effective today, Mr Rune Magnus Lundetræ will join the Company as Chief Executive Officer and Mr Svend Anton Maier will join the Company as Chief Operating Officer.
“Through the acquisition of the two Super A class jack-ups, we have executed a very attractive entry into the drilling industry at close to historical low valuations. We believe Borr Drilling can serve as an effective operational platform to further drive and execute distressed asset investments to capitalise on the low assets prices and continued volatility in the offshore industry” Mr Lundetræ comments.
Borr Drilling will start trading on the Norwegian OTC list Monday December 19.
Link to VPFF News
