Borr Drilling (Buy, TP: NOK35.00) - Wanted: financing solution
For the Q1 report (due 29 May), the main focus point is an update on the debt financing situation. Despite the two recently lost LOIs and a challenging bank market, we trust in its ability to pull together the required debt financing due to: 1) a strong relationship with banks; 2) asset value support; and 3) the ongoing broad improvement in the jackup market. The “option value of market recovery†reflected in current valuation is at the lowest level since its inception. Hence, should the financing risk go away, we expect a relief to support our BUY and NOK35 target price.
DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.
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