Offshore drilling company Borr Drilling has entered into an agreement to sell the jack-up drilling rig "Gyme" for a price of $120 million to an unrelated third party.
The "Gyme" is a 2018 PPL Pacific Class 400 located in Singapore. The rig has not been activated or contracted since its delivery.
The company, specializing in shallow water offshore drilling, agreed to sell the jack-up rig in relation to its most recent refinancing with PPL Shipyard, which was completed in early October 2022.
The money from the sale will be used to settle all outstanding amounts owed on the rig, with any remaining funds applied to the capitalized interest for the eight other rigs financed by PPL. The transaction is expected to close in the fourth quarter of 2022.
As previously reported a few days ago, Sembcorp Marine's subsidiary, PPL Shipyard struck a deal with Borr Drilling to defer its receivables from Borr Drilling related to 2017 rig orders from 2023 to 2025.
The deferment will result in Borr Drilling making earlier and higher amounts of interest payments and partial principal repayments to PPLS from 2022 to 2024.
The deferment deals are related to Borr Drilling's rig orders from October 2017 when Borr Drilling agreed to buy from PPL Shipyard nine Pacific Class 400 jack-up drilling rigs at an aggregate consideration of approximately US$1.3 billion.
Borr Drilling made an upfront payment of about US$0.5 billion. The balance amount of approximately US$0.8 billion was to be paid within five years from the respective delivery dates of the rigs.
Borr Drilling took delivery of all nine rigs progressively from November 2017 to January 2019.