Borr Drilling — Regulatory Filings 2021

Jan 13, 2021

Borr Drilling Limited - Update

Borr Drilling Limited - Update

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

article initially published in the Norwegian newspaper "Dagens Næringsliv"

today, which refers to a potential alternative plan discussed by two creditors.

The Board and Management are highly confident that the Company can execute the

liquidity improvement plan and equity raise as announced in a press release on

24 December 2020. The Company is working closely and constructively with all

lenders to achieve the best possible solution for all stakeholders.

Hamilton, Bermuda

13 January 2021

Forward looking statements

This announcement includes forward looking statements, which are 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 the statement that the

Board and management are highly confident that it can execute the liquidity

improvement plan and equity raise announced on December 24, 2020  and other non

-historical statements. These forward-looking statements are based upon various

assumptions, many of which are based, in turn, upon further assumptions, which

are, by their nature, uncertain and subject to significant known and unknown

risks, contingencies and other factors which are difficult or impossible to

predict and which are beyond our control. 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, including risks relating to the liquidity improvement plan

including the risk that the Company is unable to reach final agreement and

definitive documentation with the relevant creditors and risks relating to the

final terms of such agreements, risks relating to meeting conditions to these

agreements, 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, 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 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 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, 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 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, 2019.