Business
Borr Drilling Limited - Acquisition of Five Premium Jack-Up Rigs through New Joint Venture
Borr Drilling Limited (NYSE and Euronext Growth Oslo: "BORR") ("Borr Drilling" or the "Company") announced today that it has entered into definitive agreements to acquire five premium jack-up rigs from Fontis Finance Ltd. ("Fontis") for a purchase price of $287 million (the "Transaction").
About this update from Borr Drilling Limited
[{"type":"text","content":"HAMILTON, Bermuda, March 23, 2026 /PRNewswire/ -- Borr Drilling Limited (NYSE and Euronext Growth Oslo: "BORR") ("Borr Drilling" or the "Company") announced today that it has entered into definitive agreements to acquire five premium jack-up rigs from Fontis Finance Ltd. ("Fontis") for a purchase price of $287 million (the "Transaction").","length":390,"tagName":"p"},{"type":"text","content":"The acquisition will be completed through BC Ventures Limited, a newly established 50/50 joint venture between subsidiaries of Borr Drilling and its long-term well construction partner in Mexico.","length":195,"tagName":"p"},{"type":"text","content":"Under the Transaction, the joint venture will acquire the rig-owning entities, which own two Friede & Goldman JU-2000E design rigs and three LeTourneau Super 116-C design rigs. These five rigs are currently located in Mexico.","length":229,"tagName":"p"},{"type":"text","content":"The Transaction is expected to be financed through a $237 million non-recourse seller's credit, in addition to a cash contribution of $25 million from each of Borr Drilling and its local partner at closing. The seller's credit will have a 2.5-year maturity from the date of closing and will be secured by, among other things, a first lien on the five jack-up rigs.","length":372,"tagName":"p"},{"type":"text","content":"Commenting on the Transaction, Borr Drilling CEO Bruno Morand said, "We are pleased to execute this acquisition alongside our longstanding partner. Together, we have built a strong brand with a proven operational track record in Mexico. These rigs are being acquired at an attractive valuation and at a lower debt per rig and cash breakeven level than our existing fleet.","length":376,"tagName":"p"},{"type":"text","content":"We continue to see shallow-water rigs as strategically important for our customers, particularly at a time when security of energy supply and reliability of execution are of heightened importance. In the current environment, we expect demand for jack-up rigs to increase, and the acquisition of these units positions us well to capture future opportunities in Mexico and globally."","length":386,"tagName":"p"},{"type":"text","content":"The Transaction is expected to close within Q3 2026, subject to customary closing cond...