BORR DRILLING ACQUIRES PREMIUM JACKUP RIGS FROM PPL SHIPYARD
Borr Drilling the signing of a Master Agreement for the acquisition of nine premium jack-up rigs from PPL Shipyard Pte Limited. The acquisition will increase the Borr Drilling fleet to a total of 26 jack-up rigs once all rigs under construction have been delivered and 22 of the rigs are built after 2000. The Company continues to deliver on its strategy to acquire premium zjack-up drilling rigs at attractive prices and consolidate ownership in the premium segment of the overall jack-up rig fleet.
The acquired rigs have been built or are under construction at PPL's yard and are of a well-known design consistent with the Company’s existing fleet. A large fleet of similarly designed rigs facilitates operational excellence and cost synergies. Seven out of the nine rigs have drilling packages from Cameron (a Schlumberger Limited company) while all nine rigs have Cameron BOP’s.
Total consideration for the transaction is expected to be approximately USD 1.3 billion. Borr Drilling has secured optional delivery financing of the Rigs of approximately USD 0.8 billion on attractive terms. The lender is entitled to a limited market based mechanism based on uplift in market value, less capital cost of the acquired rigs from 6 October 2017 until the repayment date of the financing.
Borr Drilling will take delivery of the first of the rigs in Q4 2017 with the remaining rigs being delivered quarterly thereafter until the last rig is delivered in Q1 2019. Borr Drilling has agreed to pay a pre-delivery instalment of approximately USD 500 million in the short term while the remaining purchase price is payable on delivery of each individual rig, which is fully financed by the delivery financing. Completion of the transaction with PPL is subject to equity financing being secured by the Company. (Source: Borr Drilling)
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