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Borr Drilling Limited - Update on Share Repurchase Program

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Borr Drilling (NYSE and OSE: BORR) has announced details of its share repurchase program. Following the November 6 announcement of a $20 million share buyback commitment, the company has authorized a First Tranche of up to $10 million to be executed by November 30, 2024. DNB Markets will conduct open market transactions on OSE and NYSE, with purchases capped at $10 million and 3 million shares, at a maximum price of $5 per share. The program aims to reduce share capital and benefit shareholders. The company retains the right to suspend or discontinue repurchases at any time.

Borr Drilling (NYSE e OSE: BORR) ha annunciato i dettagli del suo programma di riacquisto di azioni. Dopo l'annuncio del 6 novembre di un impegno di riacquisto di azioni di 20 milioni di dollari, l'azienda ha autorizzato un Primo Tranche di fino a 10 milioni di dollari da eseguire entro il 30 novembre 2024. DNB Markets condurrà transazioni nel mercato aperto su OSE e NYSE, con acquisti limitati a 10 milioni di dollari e 3 milioni di azioni, a un prezzo massimo di 5 dollari per azione. Il programma mira a ridurre il capitale azionario e a beneficiare gli azionisti. L'azienda si riserva il diritto di sospendere o interrompere i riacquisti in qualsiasi momento.

Borr Drilling (NYSE y OSE: BORR) ha anunciado los detalles de su programa de recompra de acciones. Tras el anuncio del 6 de noviembre de un compromiso de recompra de acciones de 20 millones de dólares, la empresa ha autorizado un Primer Tramo de hasta 10 millones de dólares que se ejecutará antes del 30 de noviembre de 2024. DNB Markets llevará a cabo transacciones en el mercado abierto en OSE y NYSE, con compras limitadas a 10 millones de dólares y 3 millones de acciones, a un precio máximo de 5 dólares por acción. El programa tiene como objetivo reducir el capital social y beneficiar a los accionistas. La empresa se reserva el derecho de suspender o interrumpir las recompras en cualquier momento.

Borr Drilling (NYSE 및 OSE: BORR)는 자사 주식 매입 프로그램에 대한 세부사항을 발표했습니다. 11월 6일에 2천만 달러의 주식 매입 약속을 발표한 후, 회사는 최대 1천만 달러의 첫 번째 트랜치를 2024년 11월 30일까지 실행하도록 승인했습니다. DNB 마켓은 OSE와 NYSE에서 공개 시장 거래를 수행하며, 매입 한도는 1천만 달러와 300만 주로, 주당 최대 5달러에 매입됩니다. 이 프로그램의 목표는 주식 자본을 줄이고 주주에게 혜택을 주는 것입니다. 회사는 언제든지 매입을 중단하거나 종료할 권리를 보유합니다.

Borr Drilling (NYSE et OSE : BORR) a annoncé les détails de son programme de rachat d'actions. Suite à l'annonce du 6 novembre d'un engagement de rachat d'actions de 20 millions de dollars, l'entreprise a autorisé une première tranche allant jusqu'à 10 millions de dollars à exécuter d'ici le 30 novembre 2024. DNB Markets effectuera des transactions sur le marché libre à OSE et NYSE, avec des achats plafonnés à 10 millions de dollars et 3 millions d'actions, à un prix maximum de 5 dollars par action. Le programme vise à réduire le capital social et à bénéficier aux actionnaires. L'entreprise se réserve le droit de suspendre ou d'interrompre les rachats à tout moment.

Borr Drilling (NYSE und OSE: BORR) hat Einzelheiten zu seinem Aktienrückkaufprogramm bekannt gegeben. Nach der Ankündigung vom 6. November über ein Rückkaufengagement von 20 Millionen Dollar hat das Unternehmen eine erste Tranche von bis zu 10 Millionen Dollar genehmigt, die bis zum 30. November 2024 ausgeführt werden soll. DNB Markets wird Transaktionen am offenen Markt an OSE und NYSE durchführen, wobei die Käufe auf 10 Millionen Dollar und 3 Millionen Aktien begrenzt sind, zu einem maximalen Preis von 5 Dollar pro Aktie. Das Programm zielt darauf ab, das Aktienkapital zu reduzieren und den Aktionären Vorteile zu verschaffen. Das Unternehmen behält sich das Recht vor, Rückkäufe jederzeit auszusetzen oder einzustellen.

Positive
  • Authorization of $20 million share buyback program showing financial strength
  • Initial $10 million First Tranche implementation demonstrates commitment to shareholder value
  • Share capital reduction potentially improving EPS
Negative
  • buyback size relative to market cap
  • Short implementation timeframe may impact market price

Insights

The $20 million share buyback commitment, with an initial $10 million tranche, represents a strategic move to enhance shareholder value. With a market cap of $1 billion, this repurchase program accounts for roughly 2% of the company's value, indicating a measured approach to capital return.

The price cap of $5 per share and 3 million share limit for the first tranche suggests careful financial management. The program's structure through DNB Markets, with independent execution, demonstrates strong corporate governance and compliance with market regulations. The short execution window until November 30 could create temporary buying pressure, potentially supporting the stock price in the near term.

HAMILTON, Bermuda, Nov. 12, 2024 /PRNewswire/ -- Borr Drilling Limited ("Borr Drilling" or the "Company") (NYSE and OSE: BORR) refers to its announcement on 6 November 2024, where the Company's Board of Directors authorized the commitment to repurchase $20 million worth of shares within year end 2024, under its previously announced $100 million share repurchase authorisation. The intention of the program is to service its shareholders by way of reducing the share capital. As an initial step under the repurchase program, the Board has authorized the Company to purchase up to $10 million of the Company's shares (the "First Tranche") by November 30, 2024, and the Company has entered an agreement with DNB Markets ("DNB") to effect the First Tranche in open market transactions on OSE and NYSE.

The First Tranche will commence on November 13, 2024, and will be completed by November 30, 2024; provided, however, that the Company may discontinue or suspend the repurchases under the First Tranche at any time without notice. Aggregate repurchases under the First Tranche are capped at $10 million and 3 million shares, and the maximum amount payable per share is USD 5. The Company cannot predict how many shares will be repurchased or the timing of any shares repurchased under the First Tranche.

DNB will carry out the Company's instructions on the acquisition of shares, and will make its trading decisions independently of, and uninfluenced by, the Company. The First Tranche will be completed in accordance with the Market Abuse Regulation (EU) No 596/2014 ("MAR") and Commission Delegated Regulation (EU) 2016/1052 ("Safe Harbour Regulation").

This information is subject of the disclosure requirements pursuant to Section 5-12 of the Norwegian Securities Trading Act and Article 5 of the Market Abuse Regulation.

Forward-Looking Statements

This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical facts included in this press release, are forward-looking statements, including statements regarding the repurchase program announced in this release, the First Tranche, the timing and amount of repurchases of the shares that may be made under the repurchase program including the First Tranche and other non-historical statements. Such forward looking statements are based upon management's current plans, expectations, assumptions and beliefs and are subject to a number of risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, including risks related to the actual amount of shares ultimately repurchased under the share repurchase program including the First Tranche and the prices and timing thereof, risks relating to available liquidity, limits under debt instruments and other limits on our ability to repurchase shares and other risks and uncertainties described in the section entitled "Risk Factors" in our most recent annual report on Form 20-F filed with (and other filings with) the Securities and Exchange Commission.  These forward-looking statements are made only as of the date of this release. We do not undertake to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.

CONTACT:

Questions should be directed to: Magnus Vaaler, CFO, +44 1224 289208

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SOURCE Borr Drilling Limited

FAQ

What is the total value of Borr Drilling's share repurchase program announced in November 2024?

Borr Drilling announced a $20 million share repurchase commitment as part of its previously authorized $100 million share repurchase program.

How much is the First Tranche of BORR's share buyback program?

The First Tranche is authorized for up to $10 million of share repurchases, with a cap of 3 million shares and maximum price of $5 per share.

When will Borr Drilling's First Tranche share buyback be completed?

The First Tranche will commence on November 13, 2024, and is scheduled to be completed by November 30, 2024.

Who will execute BORR's share repurchase program?

DNB Markets will execute the share repurchases independently on behalf of Borr Drilling through open market transactions on OSE and NYSE.

Borr Drilling Limited

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