Borr Drilling Limited announced the purchase of five premium jack‑up rigs from Fontis Finance Ltd. for a total of $287 million. The deal, which is expected to close in the third quarter of 2026, involves two Friede & Goldman JU‑2000E units and three LeTourneau Super 116‑C units that are currently stationed in Mexico. Financing will be provided through a $237 million non‑recourse seller credit and $25 million of cash from each party at closing, with the transaction executed via BC Ventures Limited, a 50/50 joint venture between Borr and its long‑term Mexican partner.
The acquisition expands Borr’s fleet with high‑specification units that lower the debt per rig and the cash breakeven level compared with its existing fleet. 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.” The move positions Borr to capture growing demand for shallow‑water rigs in Mexico and globally, where energy‑security concerns are driving higher utilization.
The transaction adds $237 million of non‑recourse seller credit to Borr’s balance sheet, with a 2.5‑year maturity. The company’s debt‑to‑equity ratio stands at 1.76, and the new financing will increase leverage but also provide a lower‑cost capital base for the newly acquired rigs. Each party will contribute $25 million in cash, further supporting the company’s liquidity profile.
Borr’s fleet now totals 29 rigs after the recent acquisition of five units from Noble Corporation in January 2026 for $360 million. The company’s focus on shallow‑water operations aligns with a broader market recovery, and management expects demand for jack‑up rigs to rise. The deal is part of a broader strategy to strengthen Borr’s market position while managing debt levels and capital allocation.
CEO Bruno Morand added, “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.”
Investors have noted that the acquisition may already be priced into the company’s valuation, but the deal strengthens Borr’s fleet and positions it to benefit from the expected uptick in jack‑up rig demand. The transaction underscores Borr’s commitment to expanding its shallow‑water capabilities while maintaining a disciplined approach to financing and leverage.
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