Borr Drilling Announces Agreement to Acquire Five Premium Jack-Up Rigs

Borr Drilling (NYSE: BORR) agreed to acquire five premium jack-up rigs from Noble Corporation for a total purchase price of $360 million, increasing its fleet from 24 to 29 rigs.

Rhea-AI Summary

Borr Drilling (NYSE: BORR) agreed to acquire five premium jack-up rigs from Noble Corporation for a total purchase price of $360 million, increasing its fleet from 24 to 29 rigs.

Transaction financing: $150m new 10.375% senior secured notes due 2030, $150m seller's credit due 2032, and an $85m equity raise. Two rigs will be bareboat-chartered back to the seller for 12 months; those two will be placed in the notes' restricted group. The rigs are expected to generate $29m total earnings before debt service. Closing is expected in Q1 2026, subject to customary conditions. The company also initiated a process to list on Euronext Growth Oslo as a step toward re-listing on the Oslo Stock Exchange.

Positive

• Fleet increases from 24 to 29 rigs
• Acquisition price of $360 million for five premium rigs
• Expected $29 million earnings before debt service from rigs
• Two rigs under 12-month bareboat charters providing cashflow certainty
• Transaction said to be immediately accretive to Adjusted EBITDA

Negative

• Planned $150m additional 10.375% senior secured notes due 2030 increases leverage
• Planned $85m equity raise may dilute existing shareholders
• Seller's credit of $150m due 2032 adds long-term secured obligation
• Closing conditional on completing the described financings and customary conditions

Argus Dec 9 session

+7.39% close to close Open Argus

Details

News Market Reaction – BORR

On Dec 9, the first trading day after this news, BORR closed 7.39% above the previous close.

Data tracked by StockTitan Argus for the Dec 9 session.

Key Figures

Acquisition price: $360 million Rigs acquired: 5 rigs Fleet size increase: 24 to 29 rigs +5 more

Acquisition price

$360 million

Total purchase price for five premium jack-up rigs

Rigs acquired

5 rigs

Premium jack-up rigs bought from Noble Corporation

Fleet size increase

24 to 29 rigs

Fleet size after completion of acquisition

Expected earnings

$29 million

Total earnings from acquired rigs before debt service

Notes add-on

$150 million

Additional 10.375% Senior Secured Notes due 2030

Notes coupon

10.375%

Interest rate on Senior Secured Notes due 2030

Seller's credit

$150 million

Seller’s credit financing due in 2032

Equity raise

$85 million

Planned equity financing component of acquisition

Historical Context

5 past events · Latest: Dec 08

5 events

1. Dec 08

   Asset transaction

   24h Move

   +0.3%

   Noble selling six jackups including five units to Borr for $360M.

2. Nov 05

   Earnings update

   24h Move

   +0.7%

   Q3 2025 results with revenue and Adjusted EBITDA growth and guidance.

3. Oct 27

   Contract extensions

   24h Move

   +4.3%

   Multi‑year extensions for three jack-up rigs and Mexico collections.

4. Oct 24

   Contract terminations

   24h Move

   +4.3%

   Termination of Odin and Hild contracts due to sanctions on counterparty.

5. Oct 15

   Earnings call notice

   24h Move

   +1.5%

   Announcement of webcast and conference call for Q3 2025 results.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

jack-up rigs, bareboat basis, senior secured notes, seller's credit, +1 more

5 terms

jack-up rigs technical

"agreement to acquire five premium jack-up rigs from Noble Corporation"

A jack-up rig is a mobile offshore platform used for drilling or servicing wells that lowers extendable legs to the seabed and then raises the working platform above the water like a table on stilts. Investors care because these rigs are revenue-generating assets whose value and income depend on oil and gas demand, contract rates and utilization; think of them as specialized rental equipment whose earnings rise and fall with energy prices and project activity.

bareboat basis financial

"Two of the rigs will be chartered back to the seller on a bareboat basis"

A bareboat basis is a lease arrangement where a ship is rented out without crew, supplies or operational services, leaving the charterer responsible for running, insuring and maintaining the vessel as if they owned it during the term. For investors, it matters because this setup shifts operational costs, liabilities and revenue recognition to the charterer — similar to renting a car and driving it yourself rather than hiring a driver — which can affect cash flow, balance sheet treatment and risk exposure.

senior secured notes financial

"an offering of an additional $150 million of the Company's existing 10.375% Senior Secured Notes due 2030"

Senior secured notes are loans a company sells to investors that are backed by specific assets and given first priority for repayment if the company defaults. Because they have a claim on collateral and are paid before other debts, they usually offer lower risk and correspondingly lower interest than unsecured debt; investors use them to judge how safe repayment and recovery of principal might be, like holding a mortgage instead of an unsecured credit card balance.

seller's credit financial

"a $150 million seller's credit due in 2032"

A seller's credit is when the seller agrees to finance all or part of a purchase, letting the buyer pay over time instead of up front. For investors, this matters because it can boost sales and make deals happen faster, but it also shifts repayment risk and delays cash inflows, similar to a store letting a customer take an item home on a short-term loan—good for revenue growth but exposes the lender to possible nonpayment.

equity raise financial

"and (iii) an $85 million equity raise"

An equity raise is when a company sells new shares to outside or existing investors to obtain cash for growth, operations, debt repayment, or other needs. It matters to investors because issuing more shares reduces each existing owner’s percentage—like cutting the ownership pie into more slices—and can change share value, signal how management prefers to fund the business, and affect future earnings per share and voting power.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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HAMILTON, Bermuda, Dec. 8, 2025 /PRNewswire/ -- Borr Drilling Limited (NYSE: BORR) ("Borr Drilling" or the "Company") has entered into an agreement to acquire five premium jack-up rigs from Noble Corporation, consisting of three Friede & Goldman JU-3000N design rigs and two Gusto MSC CJ50 design rigs, for a total purchase price of $360 million.

These rigs have complementary specifications and geographic footprint to Borr Drilling's existing fleet, enabling the Company to leverage its best-in-class platform to maximize the value of these assets while offering our customers a larger and versatile fleet. Upon completion of the acquisition, the Company's fleet size will increase from 24 to 29 rigs, further strengthening its position as the owner of the youngest premium jack-up fleet globally.

Two of the rigs will be chartered back to the seller on a bareboat basis for a period of 12 months allowing the seller to complete the current drilling contracts for these rigs. The bareboat contracts earnings are net of operating costs, providing the Company with earnings and cashflow certainty in the period. The rigs are expected to generate total earnings of $29 million before debt service.

The acquisition is planned to be financed by (i) an offering of an additional $150 million of the Company's existing 10.375% Senior Secured Notes due 2030; (ii) a $150 million seller's credit due in 2032; and (iii) an $85 million equity raise. The two rigs under bareboat charters will be placed into the Senior Secured Notes' restricted group which secures the Company's existing bond, while the remaining three rigs will be financed on a non-recourse basis by the seller's credit facility outside the bond group.

Bruno Morand, Chief Executive Officer, said: "This acquisition represents a compelling strategic and financial opportunity for Borr Drilling. We are acquiring these rigs at an attractive price and at a point in the jack-up rig cycle where demand is showing signs of strengthening. We expect the transaction to be immediately accretive to Adjusted EBITDA and reduce our debt per rig. The Borr Drilling's platform - built on operational excellence, customer centricity, and our premium jack-up fleet - remains our defining competitive advantage. We believe this expanded platform will deepen customer relationships and drive attractive long-term value for shareholders."

The acquisition is expected to close in Q1 2026, subject to customary closing conditions including completion of the Senior Secured Notes financing described above.

We also announce that the Company has started the process to list its shares on the Euronext Growth Oslo, as a first step towards re-listing on the Oslo Stock Exchange ("OSE"). While this follows a recent decision to consolidate listings on the NYSE, the decision to reinstate a dual listing was driven by strong investor interest and constructive engagement with our financial partners. The Board has therefore weighed the costs and complexities of a dual listing against the benefits and opportunities of a dual-market presence.

A presentation has been prepared with further details about the acquisition which is available on the Company's website, www.borrdrilling.com.

Forward looking statements

This press release and related discussions include forward looking statements made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward looking statements do not reflect historical facts and may be identified by words such as "anticipate", "believe", "continue", "estimate", "expect", "intends", "may", "should", "will", "ensure", "likely", "aim", "plan", "guidance" and similar expressions and include statements regarding the acquisition of rigs as described above, the expected benefits of the acquisition, the contract value of the bareboat charter for two of the rigs, the financing of the acquisition and other statements relating to the acquisition, statements with respect to the Company starting the process to list its common shares at the Euronext Growth Oslo, as a first step towards relisting on the OSE and the expected benefits of such listings and other non-historical statements. Such forward looking statements are subject to risks, uncertainties, contingencies and other factors could cause actual events to differ materially from the expectations expressed or implied by the forward-looking statements included herein, including risks relating to acquisition, including risks relating to completion of the acquisition, the financing of the acquisition, the risk that the expected benefits discussed herein are not realized and other risks relating to the acquisition, risks relating to the process to list the Company's shares on Euronext Growth Oslo and relisting on the OSE and the risks that the expected benefits of such listings, if obtained, are not realized, and other risks and uncertainties described in the section entitled "Risk Factors" in our most recent annual report on Form 20-F and other filings with the Securities and Exchange Commission. Such risks, uncertainties, contingencies and other factors could cause actual events to differ materially from the expectations expressed or implied by the forward -looking statements included herein. 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

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What rigs is Borr Drilling (BORR) acquiring from Noble Corporation on December 8, 2025?

Borr is acquiring five premium jack-up rigs: three Friede & Goldman JU-3000N and two Gusto MSC CJ50 design rigs for $360 million.

How will Borr finance the $360 million rig acquisition (BORR)?

Financing is planned via $150m new 10.375% senior secured notes due 2030, a $150m seller's credit due 2032, and an $85m equity raise.

When is the Borr Drilling (BORR) acquisition expected to close and what are the conditions?

The acquisition is expected to close in Q1 2026, subject to customary closing conditions and completion of the described financings.

What immediate financial impact did Borr (BORR) claim for the acquisition?

The company expects the transaction to be immediately accretive to Adjusted EBITDA and to reduce debt per rig.

What cashflow certainty do the rigs provide for Borr Drilling (BORR)?

Two rigs will be bareboat-chartered back to the seller for 12 months, with earnings net of operating costs and expected total earnings of $29m before debt service.

Will Borr Drilling (BORR) change its listings following the acquisition announcement?

Borr has started the process to list on Euronext Growth Oslo as a first step toward re-listing on the Oslo Stock Exchange.