Sembcorp Marine and Borr Drilling agree on rig payment term



October 10, 2022

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Sembcorp Marine subsidiary PPL Shipyard has entered into definitive agreements with offshore drilling company Borr Drilling to defer its claims on Borr Drilling from 2023 to 2025.

The definitive agreements follow previously announced tentative agreements. The postponement will require Borr Drilling to make earlier and higher interest payments and partial principal repayments to PPLS from 2022 to 2024.

Borr Drilling has also completed the required conditions, including raising certain amounts of equity and completing the refinancing of its other secured creditors.

The deferral agreements relate to Borr Drilling rig orders from October 2017, when Borr Drilling agreed to purchase nine Pacific Class 400 jack-up rigs from PPL Shipyard for an aggregate consideration of approximately $1 .3 billion US dollars.

Borr Drilling has made an initial deposit of approximately US$0.5 billion. The balance of approximately US$0.8 billion (“Balance Amount”) was to be paid within five years of the platforms’ respective delivery dates.

Borr Drilling took delivery of the nine drill rigs gradually from November 2017 to January 2019.

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