Borr Drilling — Capital/Financing Update 2022

Jun 30, 2022

Borr Drilling Limited - Update on Refinance

Borr Drilling Limited - Update on Refinance

Hamilton, Bermuda 30 June 2022: Borr Drilling Limited (the "Company") (NYSE and

OSE: BORR) refers to its previous communication regarding its ongoing

negotiations with creditors to reach mutual agreements to refinance and extend

its 2023 maturities and complete such refinancing by 30 June 2022.

Significant progress has been made in the negotiations with the target to put in

place the right capital structure for the company going forward. A complete

solution will require a further equity injection combined with debt repayments,

extensions and concessions by the creditors resulting in a robust capital

structure that supports a low cash break even and thereby a higher free cash

generation.

In order to have the required time to conclude full lock-up and commitments from

all creditors, the necessary covenant waivers have been extended until 15 July

2022 by the lenders in the bank syndicate. Thus far specific proposals have been

received from all creditor groups, some of which have already resulted in

agreements in principle. In particular, we have agreed terms in principle for

the refinancing of the senior secured bank facility in July 2022 to be funded

with a mix of a new credit facility and equity/an asset sale.

We will continue to work with all remaining creditors to arrive at an optimized

overall financing solution, targeted to be in place by 15 July 2022.

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

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 and targets of such negotiations, capital structure, proposals from

creditor groups, agreements in principle, discussions with creditors and target

for arriving at a financial solution, 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 discussions with creditors including the

risk that a refinancing is not agreed risks relating to the terms of such

refinancing if agreed, 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 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.

Questions should be directed to: Magnus Vaaler, CFO, +44 1224 289208