Borr Drilling — Capital/Financing Update 2023

Oct 24, 2023

Borr Drilling Limited - Completion and Pricing of Private Placement

Borr Drilling Limited - Completion and Pricing of Private Placement

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART DIRECTLY OR

INDIRECTLY, IN OR INTO AUSTRALIA, CANADA, JAPAN, HONG KONG, THE UNITED STATES OR

ANY OTHER JURISDICTION IN WHICH THE RELEASE, PUBLICATION OR DISTRIBUTION WOULD

BE UNLAWFUL. THIS ANNOUNCEMENT DOES NOT CONSTITUTE AN OFFER TO BUY, SELL OR

SUBSCRIBE FOR ANY SECURITIES DESCRIBED HEREIN.

Hamilton, Bermuda, 24 October 2023

Borr Drilling Limited (NYSE and OSE: BORR) (the "Company") refers to the stock

exchange announcement on 23 October 2023 in relation to the process of

refinancing our secured debt (the "Refinancing"), and the contemplated issue of

an aggregate principal amount of USD 1.5 billion of new senior secured notes

(the "Notes") and an USD 180 million super senior revolving credit facility, to

be secured on a super senior basis by the same collateral that will secure the

Notes. As a part of the Refinancing, and to facilitate attractive terms therein,

the Company announced a contemplated a private placement (the "Private

Placement") of approximately USD 50 million in new shares (the "Offer Shares"),

each with a par value of USD 0.10.

The Company is pleased to announce that it has raised NOK 556,690,000 in gross

proceeds in the Private Placement equivalent to USD 50,000,000 of 7,522,838 new

shares (the "Offer Shares"), each at a subscription price of NOK 74 (the "Offer

Price"), equivalent to USD 6.6464 per Offer Share, subject to the satisfaction

of the Conditions (as defined below). The Private Placement was significantly

oversubscribed.

The completion of the Private Placement is subject to (i) all necessary

corporate resolutions being validly made by the Company, including the approval

by the Board, and their resolution to allocate and issue the Offer Shares, (ii)

pricing of the Notes, and (iii) the issuance of the Offer Shares in Euronext

Securities Oslo ("Euronext VPS") having taken place (the "Conditions"). Please

note that our release announcing the Private Placement on 23 October 2023, by an

oversight referred to both pricing and issuance of the Notes as a condition

under the Condition no. (ii) (as noted above, only pricing is a condition to

completion of the Private Placement).

The conditional issue and allocation of Offer Shares is today expected to be

determined by the Board at its sole discretion, in consultation with the

Managers. The date for settlement of the Offer Shares allocated in the Private

Placement is expected to be settled after pricing of the Notes through a

delivery versus payment ("DVP") with the settlement of the Private Placement

expected on or about 31 October 2023. The Offer Shares are expected to be pre

-paid by the Managers, pursuant to a pre-payment arrangement, to facilitate

prompt issue of the Offer Shares (via DTC) in Euronext VPS. The Offer Shares

will upon delivery be recorded in Euronext VPS. No Offer Shares will be offered

or sold to the public in the United States or in transactions on the NYSE. The

Company may, in its own discretion, change the date for settlement at any time

and for any reason.

The Company has considered the Private Placement in light of the equal treatment

obligations under the Norwegian Securities Trading Act and the rules on equal

treatment under Oslo Rule Book II for companies listed on the Oslo Stock

Exchange and the Oslo Stock Exchange's Guidelines on the rule of equal

treatment, and the Board is of the opinion that the transaction is in compliance

with these requirements and guidelines. The Private Placement is considered by

the Board as an important part of the Refinancing to facilitate attractive

terms. Taking into consideration the required coordination of timing of the

Private Placement with the Refinancing process, the Board has concluded that

offering of new shares in a private placement, on a price equal to the

prevailing market price, and with limited dilution, at this time to be in the

common interest of the Company and its shareholders.

DNB Markets, a part of DNB Bank ASA and Clarksons Securities AS are acting as

Joint Bookrunners in connection with the Private Placement (the "Managers"). Ro

Sommernes advokatfirma DA is acting as legal advisor to the Company in

connection with the Private Placement.

This information is considered to be inside information pursuant to the EU

Market Abuse Regulation and subject to the disclosure requirements pursuant to

section 5-12 of the Norwegian Securities Trading Act. This stock exchange notice

was published by Magnus Vaaler, CFO, on the date and time as set out above.

About Borr Drilling Limited

Borr Drilling Limited is an international drilling contractor incorporated in

Bermuda in 2016 and listed on the Oslo Stock Exchange on August 30, 2017 and on

the New York Stock Exchange on July 31, 2019 under the ticker "BORR". The

Company owns and operates jack-up rigs of modern and high specification designs

and provides services focused on the shallow water segment to the offshore oil

and gas industry worldwide. Please visit the Company's website at:

www.borrdrilling.com

Important note

This announcement is not being made in or into Canada, Australia, Japan, Hong

Kong, the United States or in any other jurisdiction where it would be

prohibited by applicable law. This distribution is for information purposes only

and does not constitute or form part of an offer or solicitation of an offer to

purchase or subscribe for securities in the United States ("U.S.") or in any

jurisdiction in which, or to any persons to whom, such offering, solicitation or

sale would be unlawful prior to registration or qualification under the

securities laws of any jurisdiction. The securities referred to herein have not

been and will not be registered under the U.S. Securities Act of 1933 (the "U.S.

Securities Act") or applicable state securities laws, and may not be offered or

sold in the United States or to U.S. persons (other than distributors) unless

such securities are registered under the U.S. Securities Act, or an exemption

from the registration requirements of the U.S. Securities Act is available.

Forward looking statements

This announcement includes forward-looking statements within the meaning of

Section 21E of the Securities Exchange Act of 1934, including a potential

issuance of Notes and Offer Shares, the conditions to the Private Placement,

expected timing of settlement of the Private Placement and other statements

relating to the Private Placement, and other non-historical statements. These

forward-looking statements are subject to numerous risks, uncertainties and

assumptions, including risks relating to the contemplated Notes and Private

Placement, including conditions to closing, risks related to changes in market

conditions and other risks included in our filings with the Securities and

Exchange Commission including those set forth under "Risk Factors" in our annual

report on Form 20-F for the year ended December 31, 2022 and in prospectuses

filed with the Norwegian Financial Supervisory Authority (FSA). Forward-looking

statements reflect knowledge and information available at, and speak only as of,

the date they are made. Except as required by law, the Company undertakes no

obligation to update or revise publicly any forward-looking statements, whether

as a result of new information, future events or otherwise, after the date

hereof or to reflect the occurrence of unanticipated events. Readers are

cautioned not to place undue reliance on such forward-looking statements.

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