11 Best Affordable Stocks Under $5 to Invest in

9. Borr Drilling Limited (NYSE:BORR)

Forward P/E: 10.23

Stock Price: $1.88

Number of Hedge Fund Holders: 18

Borr Drilling Limited (NYSE:BORR) is one of the best affordable stocks under $5 to invest in. On July 1, SEB Equities upgraded Borr Drilling Limited (NYSE:BORR) to Hold from Sell with a $1.90 price target.

On July 2, Borr Drilling Limited (NYSE:BORR) made an announcement detailing the commitments it received from certain commercial banks to increase existing super senior RCF (SSRCF) to $200 million, reallocate the existing $45 million Guarantee Facility from super senior to senior secured, and add a new $35 million senior secured RCF, subject to a $100 million equity raise.

Borr Drilling Limited (NYSE:BORR) also stated that it attained more favorable terms on the financial covenants in these facilities, which includes a drop in the minimum liquidity covenant.

Management expects changes to the facilities, when coupled with the proposed $100 million equity raise announced by Borr Drilling Limited (NYSE:BORR), to raise the company’s available liquidity by more than $200 million.

This would strengthen Borr Drilling Limited’s (NYSE:BORR) financial position and support its long-term strategy for the pursuit of potential value-added growth opportunities and industry consolidation.

Borr Drilling Limited (NYSE:BORR) provides offshore drilling services to the oil and gas industry. It operates through Dayrate and Integrated Well Services (IWS) segments. The Dayrate segment provides rig charters and ancillary services, while the IWS segment offers integrated well services through Opex and Akal.