Borr Drilling Announces Agreement to Acquire Five Premium Jack-Up 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

Key Figures

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

Market Reality Check

$4.06 Last Close

Volume Volume 4,531,019 is slightly below the 4,730,813 share 20-day average. normal

Technical Price $4.06 is trading above the $2.43 200-day moving average and within 4% of the 52-week high.

Peers on Argus

BORR showed a small gain of 0.25% while key drilling peers were mixed: PDS up 0.22%, NBR down 5.31%, SDRL down 1.84%, HP down 0.85%, and PTEN flat. This pattern points to a stock-specific reaction rather than a coordinated sector move.

Historical Context

Date	Event	Sentiment	Move	Catalyst
Dec 08	Asset transaction	Positive	+0.3%	Noble selling six jackups including five units to Borr for $360M.
Nov 05	Earnings update	Positive	+0.7%	Q3 2025 results with revenue and Adjusted EBITDA growth and guidance.
Oct 27	Contract extensions	Positive	+4.3%	Multi‑year extensions for three jack-up rigs and Mexico collections.
Oct 24	Contract terminations	Negative	+4.3%	Termination of Odin and Hild contracts due to sanctions on counterparty.
Oct 15	Earnings call notice	Neutral	+1.5%	Announcement of webcast and conference call for Q3 2025 results.

Pattern Detected

Recent news and earnings items have generally been followed by positive 24-hour price reactions, including on contract wins and collections, with only one notable divergence on negative contract-termination news.

Recent Company History

Over the last few months, Borr Drilling has reported improving fundamentals and active fleet management. Q3 2025 results showed total operating revenues of $277.1M, net income of $27.8M, and Adjusted EBITDA of $135.6M with a 48.9% margin, plus strong contracting activity and collections from Mexico. Contract extensions worth about $213M and increased 2026 coverage reinforced backlog visibility. Against this backdrop, the new five-rig acquisition and planned dual listing extend the company’s growth and capital-markets trajectory.

Market Pulse Summary

This announcement details a $360 million acquisition of five premium jack-up rigs, expanding Borr Drilling’s fleet from 24 to 29 units and adding expected earnings of $29 million before debt service. Financing combines a $150 million notes add-on, a $150 million seller’s credit, and an $85 million equity raise. Combined with recent contract wins and revenue growth, investors may track execution on financing, charter performance, and the planned Oslo listing process.

Key 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.

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 a type of loan that a company borrows by issuing bonds, which are like IOUs. They are called "secured" because the company promises to give lenders specific assets, like property or equipment, if it can't pay back the loan. This makes them safer for investors and often means the company pays lower interest rates.

AI-generated analysis. Not financial advice.

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

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.