Transocean launches tender offer for senior notes due 2025, 2027

By Mary-Katherine Stinson

Lexington, Ky., April 11 – Transocean Inc. launched separate tender offers for any and all its outstanding 11½% senior guaranteed notes due 2027 (Cusips: 893830BQ1, G90073AG5) and 7¼% senior notes due 2025 (Cusips: 893830BK4, G90073AD2), according to an 8-K filing with the Securities and Exchange Commission.

The total consideration for the outstanding $687,343,000 2027 super priority 2027 notes will be calculated using the 1¾% U.S. Treasury due July 31, 2024 and a fixed spread of 0 basis points. Pricing will be determined at 10 a.m. ET on the expiration date of the offers.

The $354,244,000 outstanding 2025 priority guaranteed notes will be repurchased at par of $1,000.

Accrued interest will also be paid.

The tender offers are conditioned on Transocean’s concurrent issuance of new notes equaling at least $1.5 billion.

The tender offers will expire at 5 p.m. ET on April 17, which is also the withdrawal deadline.

Settlement is expected for April 18.

Notes delivered by guaranteed delivery procedures must be received by April 22, with settlement of those notes expected by the next business day.

The company plans to redeem any 7¼% notes that remain outstanding following the tender offers at par on April 23.

Citigroup Global Markets Inc. (800 558-3745, 212 723-6106) is acting as the dealer manager for the offers.

D.F. King & Co., Inc. (212 269-5550, 800 659-5550, transocean@dfking.com, www.dfking.com/transocean) is the information agent.

Transocean is a Switzerland-based offshore drilling contractor.

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