Paratus Energy Services (PLSV) Investor update summary

Transaction overview

• Fontis Energy’s jack-up business is being sold for USD 400 million: USD 148 million cash at closing, USD 15 million deferred and USD 237 million in seller’s credit.

• Two inter-conditional transactions: CME acquires the Mexican operations for cash; CME and Borr acquire the Singapore rig-owning entities through a joint vehicle.

• The 2.5-year, non-recourse seller’s credit is secured by a first lien over all rigs, with interest rates stepping from 10% to 12% to 14%.

• Approximately USD 760 million of Fontis asset value has been distributed to stakeholders since 2022, including transaction consideration.

• Closing is targeted for H2 2026, subject to customary conditions including 2029 bondholder consent and Mexican competition clearance; the six-month long-stop date may be extended by up to 60 days.

Financial position and capital allocation

• Pro forma net debt is expected to fall from USD 581 million to USD 226 million, reducing leverage from 2.2x to 1.4x EBITDA.

• The divestment improves financial flexibility and reduces exposure to Mexican payment irregularities, potential contract suspensions and re-contracting uncertainty.

• The more predictable balance sheet is expected to improve the ability to address the 2026 bond maturity; no specific post-close debt target was set.

Dividend policy and shareholder returns

• Confidence in sustaining the current quarterly dividend of USD 0.22 per share, supported by stable PLSV cash flows and the balance sheet.

• Illustrative normalized annual cash flows support quarterly dividends of USD 0.20–0.22 per share; the dividend yield is ~20%.

• USD 261 million has been paid since IPO, alongside USD 25 million in share repurchases; multi-year contracts support limited quarter-to-quarter dividend variation.