Borr Drilling to acquire five jack-up rigs from Paratus for $287m

Core Viewpoint - Borr Drilling has entered into definitive agreements to acquire five jack-up rigs from Fontis Finance for $287 million, through a joint venture with CME, aiming to enhance its operational capacity in Mexico and globally [1][2][4]. Group 1: Acquisition Details - The acquisition involves two Friede & Goldman JU-2000E design rigs and three LeTourneau Super 116-C design rigs, all located in Mexico [2]. - The transaction is structured as two interdependent deals, including CME's acquisition of Fontis' Mexican operations for cash and the acquisition of Fontis' Singapore-based rig-owning entities by CME and Borr [2]. Group 2: Financing Structure - The financing for the transaction includes a $237 million non-recourse seller's credit and a $25 million cash contribution from both Borr Drilling and its local partner at closing [3]. - The seller's credit will mature 2.5 years post-closing and will be secured with a first lien on the five jack-up rigs [3]. Group 3: Strategic Importance - Borr Drilling's CEO emphasized the strategic importance of shallow-water rigs for customers, especially in the current environment where energy supply security is critical [5]. - The acquisition is expected to position Borr Drilling favorably to capture future opportunities in Mexico and globally, with anticipated increased demand for jack-up rigs [5]. Group 4: Background on Paratus Energy - Since acquiring Fontis in 2022, Paratus Energy has managed the distribution of approximately $760 million worth of assets to stakeholders [5]. - Paratus Energy's CEO stated that this transaction is a significant step towards becoming a leading pure-play pipe-laying support vessel company, supported by a fully contracted fleet and strong cash flow visibility [7].