Borr Drilling Expands Fleet with Agreement to Acquire Five Premium Jack-Up Rigs
Borr Drilling Limited, a prominent player in the global offshore drilling industry, has announced a significant strategic move with its recent agreement to acquire five premium jack-up rigs from Noble Corporation. This acquisition includes three Friede Goldman JU-3000N design rigs and two Gusto MSC CJ50 design rigs, amounting to a total purchase price of approximately $360 million.
The acquisition is set to enhance Borr Drilling's existing fleet, increasing its total rig count from 24 to 29. This expansion not only complements Borr Drilling's current operational capabilities but also positions the company as owner of one of the youngest fleets in the premium jack-up drilling market. The strategic acquisition is a reflection of Borr's commitment to operational excellence and a focus on meeting customer demands with a larger and more versatile fleet.
As part of the deal, two of the rigs will be chartered back to Noble Corporation on a bareboat basis for a period of 12 months. This arrangement allows Noble to satisfy its existing drilling contracts for these vessels while providing Borr Drilling with a reliable stream of earnings and cash flow certainty during this period. The charter contracts are expected to generate earnings of $29 million before accounting for debt service.
To finance the acquisition, Borr Drilling plans to implement a multifaceted approach which includes an offering of an additional $150 million of its existing Senior Secured Notes due by 2030, a $150 million seller's credit due in 2032, and an equity raise totaling $85 million. The two rigs that will be under bareboat charters will be placed into the restricted group concerning the Senior Secured Notes, thereby securing the company's existing bond. The financing structure is designed to maximize leverage and minimize risk.
Bruno Morand, the Chief Executive Officer of Borr Drilling, expressed enthusiasm regarding this acquisition. He stated, "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. Our 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 create long-term value for shareholders."
The closing of this acquisition is anticipated in the first quarter of 2026, subject to the usual closing conditions, including the successful completion of the Senior Secured Notes financing.
Moreover, Borr Drilling has initiated steps to list its shares on Euronext Growth Oslo, positioning itself favorably for a re-listing on the Oslo Stock Exchange (OSE). This decision comes on the heels of a recent consolidation of listings on the NYSE, driven by heightened investor interest and positive engagement from financial partners. The Board of Directors has analyzed the benefits of a dual-market presence against the complexity and costs involved, concluding that re-establishing a dual listing will present significant opportunities.
Borr Drilling's latest acquisition and strategic positioning highlight the company's commitment to growth in an evolving offshore drilling sector. This alignment of strategic investments and operational capabilities illustrates Borr Drilling's potential to harness long-term value for its shareholders while continuing to meet the demands of the global market. For more detailed information about the acquisition, further resources can be found on the official company website.
The acquisition is set to enhance Borr Drilling's existing fleet, increasing its total rig count from 24 to 29. This expansion not only complements Borr Drilling's current operational capabilities but also positions the company as owner of one of the youngest fleets in the premium jack-up drilling market. The strategic acquisition is a reflection of Borr's commitment to operational excellence and a focus on meeting customer demands with a larger and more versatile fleet.
As part of the deal, two of the rigs will be chartered back to Noble Corporation on a bareboat basis for a period of 12 months. This arrangement allows Noble to satisfy its existing drilling contracts for these vessels while providing Borr Drilling with a reliable stream of earnings and cash flow certainty during this period. The charter contracts are expected to generate earnings of $29 million before accounting for debt service.
To finance the acquisition, Borr Drilling plans to implement a multifaceted approach which includes an offering of an additional $150 million of its existing Senior Secured Notes due by 2030, a $150 million seller's credit due in 2032, and an equity raise totaling $85 million. The two rigs that will be under bareboat charters will be placed into the restricted group concerning the Senior Secured Notes, thereby securing the company's existing bond. The financing structure is designed to maximize leverage and minimize risk.
Bruno Morand, the Chief Executive Officer of Borr Drilling, expressed enthusiasm regarding this acquisition. He stated, "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. Our 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 create long-term value for shareholders."
The closing of this acquisition is anticipated in the first quarter of 2026, subject to the usual closing conditions, including the successful completion of the Senior Secured Notes financing.
Moreover, Borr Drilling has initiated steps to list its shares on Euronext Growth Oslo, positioning itself favorably for a re-listing on the Oslo Stock Exchange (OSE). This decision comes on the heels of a recent consolidation of listings on the NYSE, driven by heightened investor interest and positive engagement from financial partners. The Board of Directors has analyzed the benefits of a dual-market presence against the complexity and costs involved, concluding that re-establishing a dual listing will present significant opportunities.
Borr Drilling's latest acquisition and strategic positioning highlight the company's commitment to growth in an evolving offshore drilling sector. This alignment of strategic investments and operational capabilities illustrates Borr Drilling's potential to harness long-term value for its shareholders while continuing to meet the demands of the global market. For more detailed information about the acquisition, further resources can be found on the official company website.
Topics Energy）
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