RigNet has signed a multi-year agreement with Borr Drilling, a global offshore drilling contractor. Company has placed USD350 million of convertible bonds with a coupon of 3.875% per annum. The original ordering price of the rig was approximately USD240 million. Borr Drilling owns and operates jack-up rigs of modern. It’s operating revenues of $86.6 million, net loss of $103.2 million. The Board of Borr Drilling has based on the unanimous decision from the nomination committee.
The high specification designs and provides services focused on the shallow water segment. The Company is also pleased to announce that it has received an award from Pemex for an additional contract. Borr Drilling’s requirements are to support their initial steps on their digital transformation journey. As a result, the total number of shares sold in the Offering was 5,750,000. RigNet’s communications services will provide voice and video, enable critical corporate applications.
Kjetil Gran, IT director of Borr Drilling says “We rely on stable communication for delivering our services to our clients”.
Borr Drilling has also granted the underwriters of the Offering a 30-day option. It enhance crew communications over a private, secure network. In connection with this placement the Company has also entered into a call spread. RigNet is also providing additional crew welfare services with its CrewConnect portfolio. It increases the effective conversion premium for the Company to 75% above the reference price. An important criteria for the transaction was a quick settlement before September.
Company providing improved crew morale in remote locations, enhancing operational efficiency. The proceeds of the convertible bond offering will be, together with a USD200 million bank financing. The purchase of Hull B378 should be seen as an opportunistic deal. It reduce employee turnover and increased productivity. The acquisition will increase the Borr Drilling fleet to a total of 29 premium jack-up rigs. The results include a $31.5 million mark to market loss related to forward contracts.
CrewConnect provides dedicated crew internet access with Crew Hotspot. Borr Drilling will take delivery of the first rig in Q4 2019 with the remaining rigs. The transaction does not indicate that Borr has a strong strategic desire. Borr Drilling has agreed to pay a pre-delivery instalment of USD 288 million in the short term. The share price of Valaris was as of June 30, 2019 $8.53. RigNet is an important and trusted partner for Borr Drilling. Borr’s focus on premium jack-up drilling rigs has made it possible.
RigNet goes the extra mile to provide reliable and secure communication services globally. It relates to a total exposure of 4.2 million shares in Valaris which has remained unchanged in 2019. The new contract is expected to be based on the same economics and structure. Borr Drilling’s network will be supported by a specialized technical support team. The remaining purchase price is payable on delivery of each individual rig. The announcement includes forward looking statements.
It’s allowing Borr to focus on growing its industry leading fleet and meeting customers’ expectations. The Company continues to deliver on its strategy to acquire premium jack-up drilling rigs. Technical utilisation for the operating rigs was 98.8% in the second quarter. The expected commencement in the fourth quarter 2019 for an anticipated duration. The settlement of the Offering including the over-allotment shares. It continue to expand our suite of ultra-secure, intelligent networking solutions.
The completed loan financings in a total amount of $645 million. The newly awarded contract is the Company’s fourth contract award in Mexico in less than nine months. A registration statement relating to this Offering was declared effective by the U.S. Borr Drilling intends to use the net proceeds received from the Offering for general corporate purposes. Borr Drilling sees limited further opportunities for further acquisition of high quality rigs at attractive prices.
Steven Pickett, CEO of RigNet says “We are proud to be working with Borr Drilling as we meet their communication and networking needs globally”.
Borr has recently secured work with a new client in West-Africa. The forward-looking statements in the announcement are based upon various assumptions. It completed the successful activation/reactivation programmes and commencement of contracts. The Company has established a robust regional office and operations in the country. Press release shall not constitute an offer to sell or the solicitation of an offer. It include funding future mergers, acquisitions or investments.
The marketing strategy focusing on cash generative contracts will continue. Borr drilling Limited believes that the assumptions are reasonable. The announcement does not constitute an offer to subscribe to. The shareholders should as a result of such a firm contracting strategy expect relatively low utilisation in 2018. The common shares will begin trading on the New York Stock Exchange on October, 2019. Company help customers like Borr Drilling achieve their digital transformation goals.