Paratus Energy Services Ltd. announced the sale of its jack-up rig business, operated through its subsidiary Fontis Finance Ltd., to Proyectos Globales de Energía y Servicios CME and Borr Drilling. This operation marks a new chapter in the company’s simplification and operational focus strategy, which has been underway since 2022.
A Globally Reaching Agreement
The transaction involves CME’s acquisition of Fontis’ Mexican operations, while the rig fleet in Singapore will be transferred to a joint venture between CME and Borr. The agreed amount totals 400 million dollars, distributed among cash payment, deferred consideration, and a seller’s credit secured by the rigs.
The credit, for 237 million dollars, has a term of 2.5 years and is backed by a first-priority security interest. This structure ensures protection over the value of the assets while generating financial returns for Paratus.
The End of an Era for Fontis
Since its acquisition in 2022, Paratus has led a complete restructuring of Fontis, separating it from Seadrill, reducing its external financial debt to zero, and recovering outstanding accounts receivable. According to the company, Fontis’ assets will be better integrated into consolidated industrial platforms like CME and Borr, which already have a significant presence in the Mexican market.
Through this sale, Paratus will have generated nearly 760 million dollars in value distributed to stakeholders since taking control of Fontis, including 219 million for creditors and 541 million for the company.
Focus on PLSV and Financial Strengthening
Following the recent divestment of its stake in Archer, this operation allows Paratus to fully focus on its Subsea Logistics Support Vessel (PLSV) business. With a fully contracted fleet and multi-year contracts in a resilient segment, the company improves its revenue visibility and aims to maintain a stable dividend.
Additionally, the transaction will substantially reduce net leverage, providing Paratus with greater financial flexibility to pursue new growth opportunities.
Next steps
The closing of the transaction is subject to customary conditions, including approval from 2029 bondholders and competition clearance in Mexico. Paratus estimates that the transaction will be completed during the second half of 2026.
Source: Paratus Energy