HAMILTON, BERMUDA (By Paratus, 23.Mar.2026, Words: 820) — Paratus Energy Services Ltd., together with its indirect subsidiary Fontis Finance Ltd., has entered into agreements with Borr Drilling Limited and Proyectos Globales de Energía y Servicios CME, S.A. de C.V to sell Fontis’ drilling operations and jack-up fleet.
The transaction is structured through two inter-conditional transactions, whereby CME will acquire the Fontis Mexican operations for cash consideration, while CME and Borr through a jointly owned acquisition vehicle will acquire Fontis’ Singaporean rig owning entities for a combination of cash and seller’s credit.
RELATED: BORR DRILLING ACQUIRES 5 PREMIUM JACK-UP RIGS THROUGH NEW JV
The next phase for Fontis
From Paratus becoming the owner of Fontis in 2022, and up until closing of the transaction, Paratus will have overseen the distribution of approximately $760mn of asset value from Fontis to stakeholders, of which $219mn was distributed to creditors in 2022 and 2023 and approximately $541mn will have been distributed to Paratus (including the consideration to be received under the transaction).
During its ownership of Fontis, Paratus has overseen Fontis’ separation from Seadrill, organizational build-up, a full repayment of Fontis’ external financial debt and significant progress on collecting outstanding receivables. Building on this progress, Paratus is of the view that Fontis’ assets from this point would benefit from being part of a larger platform in the jack-up industry to compete most effectively.
Paratus believes that Borr and CME represent a strong industrial home for Fontis’ assets, with an established presence in Mexico and international access.
Paratus would like to thank Fontis and its employees for their dedication and contributions and wish them continued success under the ownership of Borr and CME.
Strategic rationale
The divestment of Fontis represents another step for Paratus towards enhanced strategic and financial flexibility, in continuation of the company’s divestment of its holdings in Archer during the third quarter 2025.
The transaction will significantly improve the operational risk profile by reducing exposure to payment irregularities, potential contract suspensions and re-contracting uncertainty in Mexico. As the world’s only pure play PLSV business of scale, the company will at closing be backed by a fully contracted fleet which today has multi-year contracts in a resilient and infrastructure-linked segment, providing enhanced long-term earnings visibility. Moreover, the transaction supports the objective of stable shareholder distributions, and Paratus has confidence in a credible path to sustaining the current dividend level long term. Finally, the divestment is expected to result in a substantial reduction in net leverage, further strengthening the company’s financial flexibility.
Transaction details
After having distributed $74mn from Fontis to Paratus since the start of Q4 2025, the transaction entails a price for Fontis of $400mn. The purchase price consists of:
- $148mn cash payable to Paratus at closing,
- $15mn in a deferred consideration, payable upon aggregate payments receipt by Fontis of $60mn (excl. VAT) after 1 Dec. 2025 (which is expected to be paid at closing of the transaction as approximately $45mn (excl. VAT) of this has already been collected), and
- a 2.5-years $237mn non-recourse seller’s credit to be issued at closing, which will be secured by a first lien security over all rigs and carry an interest of 10% (first 12 months), 12% (months 13-18) and 14% (final 12 months), in a ringfenced structure to protect the value of the collateral.
Closing conditions
The transaction is subject to customary closing conditions, including requisite consent from its 2029 bondholders and competition clearance in Mexico. The company intends to seek consent from bondholders in due course, and the transaction is considered to represent a materially positive event for the company’s creditors. Subject to timely satisfaction of the conditions, closing is expected to be completed during H2 2026. The transaction is subject to a long stop date of 6 months from the date of signing, which is extendable by up to 60 days in increments of 30 days subject to certain terms and conditions.
Management commentary
“Today’s announcement marks a significant milestone in Paratus’ strategic evolution,” said Robert Jensen, CEO of Paratus. “Since 2022, we have successfully transformed Fontis into a strong, debt-free platform and crystallized more than USD 760 million for our stakeholders. With this transaction, we take a decisive step toward becoming a leading pure-play PLSV company of scale. Supported by a fully contracted fleet, strong cash flow visibility and a flexible balance sheet, we are well positioned to deliver sustainable shareholder distributions while actively pursuing attractive growth opportunities.“
“This transaction reflects the continued delivery on the strategic direction set at the outset of the formation of Paratus in 2022, to create and deliver positive returns to our shareholders” said Mei Mei Chow, Chairperson of Paratus. “With two successful divestments completed, the company has taken important steps toward becoming a simpler, more focused business with a stronger financial foundation. The Board is very pleased with the progress achieved and will continue to steer the company in building and realising value for shareholders.”
