Commentary & Deal Flow

Borr IHC Limited/Borr Finance LLC (Borr Drilling Ltd) (BORR, BORRNO) US$2.035bn (up from US$1.65bn and US$1.6bn) 144A/Reg S sr sec 1st lien notes 2-part. B3/B+/B- (stable/stable/stable). Via Citi/Clarksons/DNB/GS jt glocos/JPM/BTGPAC/BTIG/Fearnley/SB1 Markets (Swedbank and Sparebank 1 investment bank jt venture) jt books. No reg rights. Settles T+10.

    - $1.15bn (up from 850m and from $800m) due 2031 (5.5y). NC2 (MWC T+50bp). Equity claw: 2y 40%. Special call: 10% per year the first 2 years at 103. Amortization: 5.0% per annum at 102.5, payable semiannually starting with the second interest payment date. CoC at 101. Denoms: 200kx1k. IPT: low-mid 9s. $50m upsizze for GCP. Price talk: 8.875% area coupon, tight-end yield 9.03%, mid-point yield 9.16%. $300m upsize for GCP. Launched: $1.15bn 8.75% coupon to yield 9.033%.

    - $885m (up from $800m) due 2033 (7.5y). NC3 (MWC T+50bp). Equity claw: 3y 40%. Special call: 10% per year the first 3 years at 103. Amortization: 5.0% per annum at 102.5, payable semiannually starting with the second interest payment date. CoC at 101. Denoms: 200kx1k. IPT: +25bp vs the 5.5y tranche. Price talk: 9.125% area coupon, tight-end yield 9.29%, mid-point yield 9.43%. $85m upsize for GCP. Launched: $885m 9.00% coupon to yield 9.302%.

    Did investor call at 12:30pm 05/26. Books close at 3:30pm (from 2pm) 05/27. Pricing 05/27 afternoon (originally pricing 05/28).  UOP: along with $19m cash on hand, to fund the tender for its existing $1.128bn 10% sr sec notes due 11/15/28 (T+50bp fixed spread tender; $55m total) and redeem $393m of its $771m 10.375% sr sec notes due 11/15/30 (at 106, $24m total), $50m upsize for GCP, and then t$385m upsize for GCP, including the redemption of existing debt. Biz: provides offshore drilling services. HQ: Hamilton, Bermuda.

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