BORR · Borr Drilling Limited

Borr Drilling's pricing of $260 million 3.50% Convertible Senior Notes due 2033 represents a strategic refinancing move, extending debt maturities from 2028 to 2033 while locking in a low 3.5% coupon payable semi-annually from November 2026. The notes are senior unsecured obligations convertible into common shares, cash, or a combination at the company's election, with an initial conversion rate of 125 shares per $1,000 principal—equating to about $8.00 per share—and subject to customary adjustments. This structure provides equity upside for holders while giving Borr flexibility in settlement. Key investor considerations include the $40 million over-allotment option, potential for redemption after May 2029 if share prices exceed 130% of the conversion price, and a fundamental change put right at par plus interest. Proceeds target repurchasing $195.2 million of higher-cost 2028 Convertible Bonds for $224.5 million (including interest), likely reducing near-term debt pressure and interest expense. Hedged holders unwinding positions could drive share buying or derivatives activity, amplifying trading volume relative to historical averages and potentially elevating the share price, which indirectly raises the effective Notes conversion price. The private placement under Rule 144A to qualified institutional buyers avoids immediate registration, with closing targeted for April 17, 2026.