Sembcorp Marine today confirmed it will extend the time for repayment terms for Borr Drilling from 2023 to 2025 for the nine jack up rigs that the Singapore yard delivered to the driller between 2017 to 2019 after a final agreement was signed.
The new terms also include higher interest payments on the back of improvement in the oil drilling market. The deferment will result in Borr Drilling making earlier and higher amounts of interest payments and partial principal repayments to Sembcorp Marine.
Borr and its subsidiaries in October 2017 agreed to buy nine Pacific Class 400 jack-up rigs from PPL Shipyard for a total of about US$1.3 billion and made an upfront down payment of US$500 million. Boor will repay partially US$800,000 from 2023 to 2025.
The balance was originally due to be paid within five years of the respective delivery dates of the rigs, plus Borr was expected pay interest at market rates for the time between the respective delivery dates and full payment of the balance.
The balance and all interest were secured by first priority mortgages over the nine jack-ups and corporate guarantee from Borr.
Borr took delivery of the rigs between November 2017 and January 2019 although the mortgages secured over the nine rigs remain in force.
Borr’s balance amount was due to mature on 1 May 2023, and a majority of the interest payable was capitalised and due in the first quarter of that year, Sembcorp Marine said previously.