Borr Drilling has entered into definitive agreements to acquire five premium jack-up rigs from Fontis Finance for a purchase price of $287 million.The acquisition…
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Borr Drilling has entered into definitive agreements to acquire five premium jack-up rigs from Fontis Finance for a purchase price of $287 million.
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.
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
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