Oil rig owner Borr to delay debt repayment

Oil rig operator Borr Drilling Ltd. has agreed with lenders to postpone the deadline for repayment of some of its debt, and aims to raise capital through equity as it seeks to overcome a demand slump, the company said.

Borr, which is dual listed in Oslo and New York, reached a deal with banks as well as lender Hayfin Capital Management to push debt repayments of

$595 million into 2023 from

2022 and to ease a minimum liquidity requirement, it said. The plan rests on a plan to raise between $40 million and $50 million in new equity at a subscription price of $0.7 per share, a 2.8 percent discount to its Wall Street closing on Tuesday.

Borr has secured investor commitments for $30 million of the share issue, and may use some of the proceeds to buy back convertible debt.