Borr Drilling (BORR) Status update summary

Acquisition details

• Entered agreements to acquire five premium jack-up rigs for $287 million through a new 50/50 joint venture with a Mexican partner.

• The rigs include two Friede & Goldman JU-2000E and three LeTourneau Super 116-C designs, all located in Mexico.

• Financing includes a $237 million non-recourse seller's credit and $25 million cash contributions from each partner.

• Seller's credit matures in 2.5 years and is secured by a first lien on the rigs.

• Transaction expected to close in Q3 2026, pending customary approvals.

Strategic rationale and outlook

• Acquisition positions the joint venture to capitalize on increasing demand for shallow-water rigs.

• Rigs acquired at attractive valuation, with lower debt per rig and cash breakeven than existing fleet.

• Focus remains on energy supply security and operational reliability in key markets.

• Joint venture leverages a strong operational track record in Mexico.

Forward-looking statements and risks

• Statements regarding acquisition benefits, financing, and fleet performance are forward-looking and subject to risks.

• Risks include completion of the acquisition, financing, and realization of expected benefits.

• Additional risks detailed in recent SEC filings and annual reports.