Borr Drilling Announces Agreement to Acquire Five Premium Jack-Up Rigs

Borr Drilling agreed to acquire five premium jack-up rigs from Noble for $360 million, increasing its fleet from 24 to 29 rigs (three JU-3000N and two CJ50) and positioning it as owner of the youngest premium jack-up fleet; two rigs will be bareboat-chartered back to Noble for 12 months, with the package expected to generate $29 million of earnings before debt service. The deal will be financed with a $150 million tap of Borr’s existing 10.375% Senior Secured Notes due 2030, a $150 million seller’s credit due 2032 (with three rigs financed non-recourse to the seller) and an $85 million equity raise, while the two bareboat-chartered units will be placed in the notes’ restricted group—measures that management says will be immediately accretive to adjusted EBITDA and reduce debt per rig but introduce creditor-security and refinancing execution risk. The acquisition is expected to close in Q1 2026 subject to customary conditions, and Borr has also initiated a process to list on Euronext Growth Oslo as a step toward relisting on the Oslo Stock Exchange; completion and the realized benefits remain subject to customary financing and execution risks.

Analysis

Borr Drilling has agreed to buy five premium jack-up rigs from Noble for $360 million, comprising three Friede & Goldman JU-3000N and two Gusto MSC CJ50 units, which will expand the fleet from 24 to 29 rigs and strengthen its position as owner of the youngest premium jack-up fleet globally. Two of the rigs will be bareboat-chartered back to Noble for 12 months to complete contracts; management projects the acquired package will generate $29 million of earnings before debt service and says the deal will be immediately accretive to Adjusted EBITDA and reduce debt per rig.

The transaction financing is a mix of a $150 million tap of Borr’s existing 10.375% Senior Secured Notes due 2030, a $150 million seller’s credit due 2032 (with three rigs financed non‑recourse to the seller) and an $85 million equity raise; two bareboat-chartered rigs will be placed into the notes’ restricted group and secure existing bondholders. The non‑recourse vs. restricted‑group split alters collateral and recovery profiles across lenders and introduces execution risk tied to the bond tap, seller credit documentation and equity issuance.

Key upside points are fleet scale, immediate charter cashflow on two rigs and management’s view of a strengthening jack-up cycle; principal risks are financing execution, high coupon secured debt (10.375%), equity dilution from the $85 million raise and customary closing conditions ahead of the planned Q1 2026 close. The company also initiated a listing on Euronext Growth Oslo as a step toward relisting on the Oslo Stock Exchange, a move driven by investor interest but subject to completion and attendant costs.

Key Decisions for Investors

• Monitor completion of the three financing pillars (the $150m note tap, $150m seller credit and $85m equity raise) and condition any position changes on clear documentation and timing,
• Consider selective accumulation only if you are constructive on a jack-up recovery and comfortable with near‑term execution risk and potential equity dilution,
• If risk‑averse to covenant/security changes or the 10.375% secured-note tap, maintain or trim exposure and await post-close evidence of stated EBITDA accretion and reduced debt per rig,
• Track the two bareboat charters and the company’s disclosure of how the rigs in the restricted group affect bond covenants and recovery metrics before increasing exposure