Borr Drilling — Capital/Financing Update 2022

Jul 21, 2022

Borr Drilling Limited - Update Refinancing

Borr Drilling Limited - Update Refinancing

Hamilton, Bermuda 21 July 2022: Borr Drilling Limited (the "Company") (NYSE and

OSE: BORR) refers to its announcements of 14 July 2022 regarding the status of

negotiations with its secured creditors and a possible equity offering.

The Company's board is pleased to announce that it has obtained a financing

proposal for the remaining $100 million of the $250 million senior secured

facilities that was still subject to final syndication as described in the

announcement of 14 July 2022. As such, agreements in principle with all the

secured creditors have now been reached to extend all secured debt to 2025,

subject to the partial paydowns described in the 14 July announcement. These

agreements in principle are subject to the respective boards' and credit

committees' approvals and binding documentation. The necessary covenant waivers

have been extended by the lenders in the existing bank syndicate to enable the

company to complete the transactions referenced above.

The Company anticipates that the need for additional liquidity in connection

with the closing of the agreements in principle referenced above can be reduced

from the $250 million communicated previously to approximately $150 million.

The Company will continue to seek solutions which could optimize the current

capital structure and reduce the need for liquidity further. Such solutions

could include further asset sales, JV structures as well as additional asset

financing.

The Company is encouraged by the strong positive momentum in day rates shown

through recent fixtures and tender activity, and by the fact that the

utilization of the modern jack up fleet now exceeds 92%.

This press release does not constitute an offer of any securities for sale.

Forward looking statements

This press release includes forward looking statements within the meaning of the

U.S. Private Securities Litigation Reform Act of 1995, which do not reflect

historical facts and may be identified by words such as "expect", "will" and

similar expressions and include statements relating to negotiations with

creditors, agreements in principle reached with creditors including the terms

and conditions of such agreements in principle and financing proposal and

statements about covenant waivers enabling the Company to complete the

transactions, statements about the need for additional liquidity, and the

Company's continuing to seek solutions to optimize its capital structure and

about momentum in day rates other non-historical statements. Such forward

-looking statements are subject to risks, uncertainties, contingencies and other

factors could cause actual events to differ materially from the expectations

expressed or implied by the forward-looking statements included herein,

including risks relating to negotiations with creditors including the risk that

the conditions to the agreements in principle are not met or that the terms of

the agreements in principle are not implemented with definitive binding

agreements on expected terms or at all, the risk that vessel sales may not be

completed on expected terms or at all, risks relating to covenants in debt

facilities and covenant waivers including the risk that waivers are not provided

as required, risks relating to liquidity and the risk that Borr may not be able

to refinance its debt maturities beyond 2023 and other risks and uncertainties

described in the section entitled "Risk Factors" in our most recent annual

report on Form 20-F and other filings with the Securities and Exchange

Commission. Such risks, uncertainties, contingencies and other factors could

cause actual events to differ materially from the expectations expressed or

implied by the forward-looking statements included herein. These forward-looking

statements are made only as of the date of this release. We do not undertake to

update or revise the forward-looking statements, whether as a result of new

information, future events or otherwise.