Borr Drilling Limited - Acquisition of Five Premium Jack-Up Rigs through New Joint Venture

Rhea-AI Summary

Borr Drilling (NYSE/Euronext: BORR) agreed to acquire five premium jack-up rigs from Fontis Finance for a total purchase price of $287 million. The rigs will be acquired via a new 50/50 joint venture, BC Ventures Limited, with a long-term Mexican partner.

Financing includes a $237 million non-recourse seller's credit (2.5-year maturity) and $25 million cash contributions from each JV partner. Closing is expected in Q3 2026, subject to customary conditions and merger control approvals.

Positive

• Acquisition value of $287 million for five premium jack-ups
• Financing structure uses $237 million non-recourse seller credit
• Local JV 50/50 partnership strengthens Mexico market position
• Rigs located in Mexico (2 JU-2000E, 3 Super 116-C designs)

Negative

• Short-term debt maturity of 2.5 years could require refinancing
• Seller's credit secured by first lien on the five rigs

News Market Reaction – BORR

+3.58%

21 alerts

+3.58% Session close to close

+9.6% Peak in 25 hr 44 min

$1.66B Market Cap

0.3x Rel. Volume

In the Mar 24 session, BORR gained 3.58%, reflecting a moderate positive market reaction. Argus tracked a peak move of +9.6% during that session. Our momentum scanner triggered 21 alerts that day, indicating elevated trading interest and price volatility.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement details a $287 million acquisition of five premium jack-up rigs in Mexico via a ne...

Analysis

This announcement details a $287 million acquisition of five premium jack-up rigs in Mexico via a new 50/50 joint venture, largely financed with a $237 million non-recourse seller’s credit and modest cash from each partner. It extends Borr’s earlier $360 million rig purchase completed on Jan 28, 2026, reinforcing a fleet growth strategy. Investors may watch for contract awards on these units, closing progress toward Q3 2026, and how the added leverage interacts with future earnings and backlog trends.

Key Figures

Acquisition price: $287 million Seller's credit: $237 million Cash contribution: $25 million each +5 more

8 metrics

Acquisition price $287 million Purchase price for five jack-up rigs from Fontis Finance Ltd.

Seller's credit $237 million Non-recourse seller's credit financing component of the transaction

Cash contribution $25 million each Cash at closing from Borr Drilling and its local partner

Credit maturity 2.5 years Maturity of the non-recourse seller's credit from closing

Rigs acquired 5 rigs Premium jack-up rigs to be acquired via BC Ventures Limited JV

Rig designs 2 JU-2000E, 3 Super 116-C Design mix of acquired jack-up rigs located in Mexico

Prior rig deal $360 million Price for five jack-up rigs acquired from Noble, completed Jan 28, 2026

Q4 2025 revenue $259.4 million Operating revenue reported for Q4 2025

Historical Context

5 past events · Latest: Mar 09 (Neutral)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Mar 09	Operational update	Neutral	+0.5%	Update on Arabian Gulf rigs after incident, confirming contracts and insurance intact.
Feb 18	Earnings results	Positive	+3.6%	Reported Q4 2025 revenue, full-year profit and sizeable backlog with fleet expansion.
Jan 30	Earnings call notice	Neutral	+0.4%	Scheduled Q4 2025 results release and investor webcast details for February 19.
Jan 28	Fleet acquisition	Positive	+3.3%	Completed $360 million purchase of five jack-up rigs, expanding fleet to 29 units.
Jan 28	Asset sale counterparty	Positive	+3.3%	Noble detailed sale terms of five jackups to Borr, including cash and seller notes.

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

Pattern Detected

Recent news, including fleet expansion and earnings, has generally seen modest positive price reactions, with acquisitions drawing stronger upside.

Recent Company History

This announcement continues Borr Drilling’s recent expansion trend. On Jan 28, 2026, the company completed a $360 million acquisition of five premium jack-up rigs, lifting its fleet to 29 rigs. Q4 2025 results on Feb 18, 2026 showed operating revenue of $259.4 million and full-year net income of $45.0 million, alongside a substantial backlog. An operational update on Mar 09, 2026 confirmed Arabian Gulf rigs remained under contract and insured. Today’s Mexico-focused joint-venture acquisition adds to this fleet and geographic build-out.

Key Terms

jack-up rigs, joint venture, non-recourse, seller's credit, +2 more

6 terms

jack-up rigs technical

"acquire five premium jack-up rigs from Fontis Finance Ltd."

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.

joint venture financial

"a newly established 50/50 joint venture between subsidiaries of Borr Drilling"

A joint venture is when two or more companies team up to work on a specific project or business idea, sharing both the risks and the rewards. It’s like friends starting a lemonade stand together—each contributes resources and they split the profits, making it easier to succeed than going alone.

non-recourse financial

"financed through a $237 million non-recourse seller's credit"

A non-recourse loan is a type of debt where the lender’s recovery is limited to a specific asset pledged as collateral, and the borrower cannot be personally pursued for any remaining balance if the asset’s value falls short. For investors, non-recourse financing shifts downside risk onto the lender and protects a borrower’s other assets, which can affect a company’s risk profile, borrowing costs, and potential returns — much like insurance that covers only the item left as collateral.

seller's credit financial

"financed through a $237 million non-recourse seller's credit"

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.

first lien financial

"secured by, among other things, a first lien on the five jack-up rigs"

A first lien is a legal claim that gives a lender the top priority to be repaid from specific collateral if a borrower defaults or liquidates assets. Think of it as being first in line for the proceeds from a sale—investors who hold a first lien are more likely to recover their money than holders of later claims, so these loans generally carry lower risk and different pricing compared with unsecured or subordinated debt.

merger control approvals regulatory

"subject to customary closing conditions, including merger control approvals."

Merger control approvals are sign-offs from government competition regulators that allow two companies to combine their businesses. Like needing a building permit before connecting two houses, these approvals check that the combined firm won’t unfairly reduce competition, and they matter to investors because they determine whether a deal can close, may delay completion, or require asset sales or other conditions that affect future profits and risk.

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

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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").

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 $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.

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.

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."

The Transaction is expected to close within Q3 2026, subject to customary closing conditions, including merger control approvals.

About Borr Drilling

Borr Drilling Limited is an international drilling contractor incorporated in Bermuda in 2016 and listed on the New York Stock Exchange since July 31, 2019 and on Euronext Growth Oslo since December 19, 2025 under the ticker "BORR". The Company owns and operates jack-up rigs of modern and high specification designs and provides services focused on the shallow-water segment to the offshore oil and gas industry worldwide. Please visit our website at 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 financing of the acquisition, the expected debt levels of the acquired and existing fleet, the cash breakeven of the acquired and existing fleet and other statements relating to the acquisition, 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, 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.

This information is considered to be inside information pursuant to the EU Market Abuse Regulation and was published by Magnus Vaaler, CFO of the Company, on the date and time provided herein.

CONTACT:

Questions should be directed to: Magnus Vaaler, CFO, +44 1224 289208

This information was brought to you by Cision http://news.cision.com

https://news.cision.com/borr-drilling-limited/r/borr-drilling-limited---acquisition-of-five-premium-jack-up-rigs-through-new-joint-venture,c4325601

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SOURCE Borr Drilling Limited

FAQ

What is BORR acquiring in the March 23, 2026 transaction?

BORR is acquiring five premium jack-up rigs for a total purchase price of $287 million. According to the company, the rigs include two Friede & Goldman JU-2000E and three LeTourneau Super 116-C designs, currently located in Mexico.

How is BORR financing the acquisition of five rigs announced March 23, 2026?

The deal is financed with a $237 million non-recourse seller's credit plus $25 million cash from each JV partner. According to the company, the seller's credit has a 2.5-year maturity and is secured by a first lien on the rigs.

When will BORR's acquisition of five jack-ups close and what approvals are needed?

The transaction is expected to close within Q3 2026, subject to customary closing conditions. According to the company, completion depends on merger control approvals and other standard conditions precedent.

What is the ownership structure for the rigs after BORR's acquisition?

The rigs will be owned by BC Ventures Limited, a newly formed 50/50 joint venture between BORR subsidiaries and a long-term Mexican well construction partner. According to the company, each partner contributes $25 million in cash at closing.

How might the acquisition affect BORR's position in Mexico and jack-up demand?

The acquisition adds five rigs in Mexico and is expected to strengthen BORR's shallow-water presence. According to the company, management expects rising jack-up demand and views the acquisition as positioning BORR to capture future opportunities.