Borr Drilling to acquire five premium jack-up rigs from Fontis Finance for $287M

Borr Drilling (BORR) announced that it has entered into definitive agreements to acquire five premium jack-up rigs from Fontis Finance for a purchase price of $287M. 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. 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. The Transaction is expected to be financed through a $237M non-recourse seller’s credit, in addition to a cash contribution of $25M 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. The transaction is expected to close within Q3, subject to customary closing conditions, including merger control approvals.