Dubai Maritime News

Noble to Sell Jackup Rigs to in Two Separate Deals for $424M

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Noble Corporation will sell six jackup rigs for $424 million in two separate transactions.

The offshore drilling company said Monday that five rigs will be sold to Borr Drilling Limited for $360 million, and one to Ocean Oilfield Drilling for $64 million.

Borr will pay $210 million in cash and $150 million in six-year seller notes that will be secured by a first lien on three jackups. Additionally, Noble intends to operate two rigs under a bareboat charter agreement with Borr for one year from signing of the definitive agreement.

The company said the deals with Borr and Ocean are expected to close early next year and the second quarter, respectively.

Chief Executive Robert Eifler said the six-rig sale is expected to be immediately beneficial to the company's cash flow and earnings before interest, taxes, depreciation and amoritization.

Once the deals close Noble will become a pureplay deepwater and ultra-harsh environment jackup operator, the company said.

Source: MarketWatch

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