Borr Drilling — Capital/Financing Update 2022

Jul 14, 2022

Borr Drilling Limited - Update on Refinance

Borr Drilling Limited - Update on Refinance

Hamilton, Bermuda 14 July 2022: Borr Drilling Limited (the "Company")(NYSE and

OSE: BORR) refers to its communication of 30 June 2022 regarding the status of

the negotiation with its secured creditors. The Company's board is pleased to

announce that agreements in principle have been reached with most of the secured

creditors to extend the majority of secured debt to 2025. These agreements are

subject to the respective board's approvals and binding documentation. The

company is seeking the required consents and waiver extensions from lenders to

complete the transaction. Once these agreements are in place, the Company will

have long term financing on approximately $1.4 billion and has also maintained

the long-term financing on the 2 new builds in the amount of $ 260 million. The

refinancing is to be largely enabled by the sale of some select assets, and

additional equity.

The asset sale includes 3 rigs under construction/contract for which the company

has received a binding LOI as previously announced, plus an additional rig that

is targeted to be sold in Q4­2022, after which the rig fleet would consist of 22

delivered rigs plus 2 rigs under construction.

The agreements in principle contemplate partial paydown of the senior secured

facility collateralized by 8 rigs from $313 million to $250 million out of which

$100 million is subject to successful syndication. In case this facility is

reduced to $150 million drawn, then 3 rigs will be unencumbered assets that

could be sold to reduce capital requirements. In addition, the agreements in

principle contemplate a $30 million paydown of the Hayfin facility.

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

press release is not an offer of securities for sale in the United States, and

securities may not be offered or sold in the United States absent registration

or an exemption from registration, and any public offering of securities to be

made in the United States will be made by means of a prospectus that may be

obtained from the issuer that will contain detailed information about the

company and management, as well as financial statements.

Forward looking statements

This press release includes forward looking statements, 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, the plan to seek

waiver extensions and consents from lenders, including the terms and conditions

of such agreements in principle and statements about the targets to raise

equity, $100m of secured facility being subject to syndication, statements about

plans to sell vessels and rig fleet and 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 lenders do not provide

necessary extensions of waivers and consents, the risk of unsuccessful

syndication of the secured facility, the risk that vessel sales may not be

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

facilities and liquidity and the risk that Borr may not be able to refinance its

debt maturities beyond 2023, risks related to the planned equity raise including

the risk that the equity raise is not completed up the expected amount or on

expected timing and the impact of such risks on the agreement in principle 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