S&P cuts Transocean Ltd.

S&P said it lowered its issuer credit rating on Transocean Ltd. to SD from CC and the ratings on the five debt securities involved in its tender to D from CC.

The downgrade follows Transocean’s completion of below-par debt repurchases through a tender, the agency said.

Transocean’s previously announced below-par tender offer expired on Nov. 9. The following notes were tendered $36.299 million of 6½% senior unsecured notes due 2020 (total consideration of $970 per $1,000), $75.757 million of 6 3/8% senior unsecured notes due 2021 (consideration of $700), $9.168 million of 3.8% senior unsecured notes due 2022 (consideration of $550), $102.897 million of 5 3/8% senior secured notes due 2023 (consideration of $650); and $123.517 million of 7¼% senior unsecured notes due 2025 (consideration of $430).

S&P said it considers the exchange the equivalent of default because noteholders got less than originally promised.

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