Borr Drilling Limited - Presentation

21 January 2021

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Important information

The information contained herein does not constitute an offer to sell or the solicitation of an offer to subscribe or buy any securities. It is solely for use as an investor presentation and is provided for information purposes only. This presentation does not contain all of the information that is material to an investor. By attending the presentation and/or reading the presentation slides you agree to be bound to the foregoing.

Forward looking statements

This presentation includes forward looking statements. Forward looking statements are, typically, statements that do not reflect historical facts and may be identified by words such as "anticipate", "believe", "continue", "estimate", "expect", "intends", "may", "should", "will" and similar expressions and include expectations regarding industry trends including activity levels in the jack-up rig industry, the global jack-up rig count, demand, scrapping and expected trends, currently visibility on tenders, trends in the shallow water offshore market, including utilization, expectations with respect to older units including scrapping expectations and expected future supply and demand, breakeven, rig supply, statements with respect to Pemex including well production and production plan and expected spending, statements with respect to our capital structure and options and targets for our balance sheet, debt amortization schedule, cash flow potential, strategy and plans statements included in our Working Capital Statement, cash flow potential, statements relating to debt maturity profile and extending runway by debt and capex deferral, statements with respect to our Mexico Joint Venture, including working capital situation, the agreement in principle reached with our syndicate of banks, Hayfin, PPL and Keppel and the conditions to those agreements, statements with respect the contemplated equity raise and other non-historical statements. The forward-looking statements in this announcement are based upon various assumptions, many of which are based, in turn, upon further assumptions, including, without limitation, management's examination of historical and expected operating trends, data contained in our records and other data available from third parties and expectations about future performance of our business and future liquidity include expected future payments to our Mexican JVs and future equity raises in line with capital needs. Because these assumptions are inherently subject to significant uncertainties and contingencies that are difficult or impossible to predict and are beyond our control, we cannot assure you that we will achieve or accomplish these expectations, beliefs or projections.

There are important factors that could cause our actual results, level of activity, performance, liquidity or achievements to differ materially from the results, level of activity, performance or achievements expressed or implied by these forward-looking statements including risks relating to our industry and business and liquidity, the risk of delays in payments to our Mexican JVs and consequent payments to us, the risk that our customers do not comply with their contractual obligations, including payment or approval of invoices for factoring, risks relating to industry conditions and tendering activity, risks relating to the agreements we have reached with lenders described in this presentation including the risk that the Company is unable to reach final agreement on and execute definitive documentation with the relevant creditors and risks relating to the final terms of such agreements, risks relating to meeting conditions to these agreements, risks relating to our ability to meet the conditions of the agreement in principle with lenders, and risks relating to our ability to agree and enter into definitive documents reflecting these agreements and the final terms of those agreements and risks relating to our ability to comply with the agreement with lenders our ability to meet our debt obligations and obligations under rig purchase contracts, risks relating to our ability to meet our obligations as they fall due, including risks relating to the contemplated equity raise, risks relating to our liquidity including the risk that we may have insufficient liquidity to fund our operations; risks that the expected liquidity improvements do not materialize or are not sufficient to meet our liquidity requirements and other risks relating to our liquidity requirements, risks relating to cash flows from operations, the risk that we may be unable to raise necessary funds through issuance of additional debt or equity or sale of assets; risks relating to our loan agreements and other debt instruments including risks relating to our ability to comply with covenants and obtain any necessary waivers and the risk of cross defaults, risks relating to our ability to meet our debt obligations and obligations under rig purchase contracts and our other obligations as they fall due, risks relating to our liquidity requirements and other risks described in our working capital statement, risks relating to future financings including the risk that future financings may not be completed when required and future equity financings will dilute shareholders and the risk that the foregoing would result in insufficient liquidity to continue our operations or to operate as a going concern and other risks factors set forth under "Risk Factors" in our filings with the U.S. Securities and Exchange Commission and prospectuses filed with the Norwegian NSA.

Given these risks and uncertainties, you should not place undue reliance on forward-looking statements as a prediction of actual results. Any forward-looking statements that we make in this presentation speak only as of the date of such statements and we caution readers of this presentation not to place undue reliance on these forward-looking statements. Except as required by law, we undertake no obligation to update or revise any forward-looking statement or statements to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events. The equity raise referenced in this presentation has not been registered under the US Securities Act of 1933, and may not be offered or sold in the US absent registration or an exception from registration or in a transaction not subject to registration under the Securities Act.

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Achieved significant liquidity improvements

Achievements in 2020 and 2021

1: June 2020

2(a): Sept 2020

2(b): Jan 2021

Bank amortisation to zero in

Extend bank and Hayfin

Deferral of additional yard

2021

maturity from June 2022 to Jan

interest payments of more than

Conversion of cash interest to

2023

$130 million (incl. $65m in June

Debt

pay-in-kind for PPL loans

12 months interest deferrals

2020 amendments) and other

(~$65m), payable Q1 2022

from banks for Q3/Q4 2020

cost deferrals of $25 million

• Amended bank loan covenants

payments

until 2023

• Keppel one additional year of

loan financing

• Amended bank loan covenants

Newbuilding commitments

Deferred rig deliveries from

Deferral of rig deliveries from

mid-2020 to early 2022

early 2022 to 2023

Equity raise

$30 million

$27.5 million

$[40]* million

>$1 billion in accumulated liquidity improvement until 2023

* Anticipated, 2021 Debt maturity and amendments are contingent upon an equity raise of gross $40m

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Extending runway by debt and capex deferral

Pre May 2020 - Debt profile

Post amendments - Debt profile

1,400

3,500

1,400

3,500

No scheduled debt

amortisation before 2023

1,200

3,000

1,200

3,000

1,000

2,500

1,000

2,500

800

2,000

800

2,000

600

1,500

600

1,500

400

1,000

400

1,000

200

500

200

500

-

0

-

0

Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1

Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1

20 20 21 21 21 21 22 22 22 22 23 23 23 23 24 24 24 24 25 25 25 25 26

20 20 21 21 21 21 22 22 22 22 23 23 23 23 24 24 24 24 25 25 25 25 26

Accumulated (rhs)

Amortisation

Yard capex

Accumulated (rhs)

Amortisation

Yard capex

4 |

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Borr Drilling Ltd. published this content on 21 January 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 January 2021 21:23:08 UTC