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Borr Drilling seeks USD 800mn to fund acquisition
Posted on Monday, 20 March 2017 13:37
Norway rig operator Borr Drilling is looking to raise USD 800.00 million through an equity offering as it looks for cash to finance the USD 1.35 billion acquisition of jack-up rigs from Transocean.
As part of the placing, the Oslo-listed group is looking to sell 228.60 million shares at a price of USD 3.50 apiece, representing a discount to its close of NOK 32.50 (USD 3.83), on 17th March, the last trading day prior to the announcement.
According to the statement, Borr Drilling has initially started the offering through an accelerated bookbuild from a number of investors following the execution of wall crossing agreements.
The company is working with Clarksons Platou Securities, DNB Markets and Fearnley Securities on the deal, for which the notification of allotment will be sent to applicants around 21st March.
In a concurrent announcement, Borr Drilling signed a letter of intent to acquire 15 high speed specification jack-up rigs from Switzerland-based Transocean for USD 1.35 billion.
The deal consists of the vendor’s entire jack-up fleet, including five new builds currently under construction.
Closing is expected before the end of May 2017, subject to a definitive agreement being made.
Borr Drilling claims to be an international drilling contractor to the oil and gas industry, with a strategy of acquiring and managing modern drill assets.
The company’s fleet is capable of drilling to a maximum well depth of 35,000 feet, while operating in water depths ranging from 30 to 400 feet.
Borr Drilling completed its initial public offering in December, through the USD 155.00 million equity issue which also included the acquisition of two rigs worth USD 130.00 million.
The group has plans to list on a reputable stock exchange this year.
For Transocean this comes after the group reported its 2016 financial results which included a 7.5 per cent increase in revenue, a 139.0 per cent growth by adjusted net income and dilutive earnings per share up 133.0 per cent, totalling USD 974.00 million, USD 239.00 million and USD 0.63, respectively.
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