Borr Drilling Stock Edges Up After Acquisition Of 5 Jack-Up Rigs In Mexico For $287M

• Borr Drilling said the acquisition will be financed through a $237 million non-recourse seller's credit. 
• It would also include a cash contribution of $25 million from each of Borr Drilling and its local partner at closing. 
• The company said that it will complete the acquisition via BC Ventures Ltd., a new 50/50 joint venture between subsidiaries of Borr Drilling and its long-term well construction partner in Mexico.

Shares of drilling contractor Borr Drilling Ltd. (BORR) edged up about 0.4% in Monday’s after-market hours amid an announcement that it will acquire five premium jack-up rigs in Mexico from Fontis Finance Ltd.

The company said that it will pay $287 million for the deal, expected to be financed through a $237 million non-recourse seller's credit. This will be in addition to a cash contribution of $25 million from each of Borr Drilling and its local partner at closing.

The deal is expected to close within the third-quarter (Q3) of 2026, subject to customary closing conditions, including merger control approvals.

Deal Contours

The company said that it will complete the acquisition via BC Ventures Ltd., a new 50:50 joint venture between subsidiaries of Borr Drilling and its long-term well construction partner in Mexico.

As per the deal, the joint venture will acquire the rig-owning entities. Meanwhile, the seller's credit that the company plans to use to find the deal 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.

“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," Borr Drilling CEO Bruno Morand said.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around BORR shares stayed in the ‘bearish’ territory amid ‘low’ message volumes over the past 24 hours.

BORR stock has gained about 26% in the past year.

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