By Paul A. Harris
Portland, Ore., Jan. 9 – Transocean Titan Financing Ltd. priced an upsized $525 million issue of amortizing five-year senior secured notes (B2/B-) at par to yield 8 3/8% in a Monday drive-by, according to market sources.
The issue size increased from $500 million.
The yield printed at the tight end of yield talk in the 8½% area. Initial guidance was in the 9% area.
The deal was heard to be eight-times oversubscribed.
Morgan Stanley was at the left of a syndicate of managers that also included Citigroup, DNB, Goldman Sachs, Wells Fargo and Credit Agricole.
The guarantors are Transocean Ltd. (Parent), also known by its stock ticker, NYSE: RIG, and Triton Titan GmbH.
The financial covenants feature a collateral rig leverage ratio, a total leverage ratio and a minimum debt service reserve.
Negative covenants are substantially similar to the existing RIG secured notes packages, including limitations on liens and debt.
The Switzerland-based offshore drilling contractor plans to use the proceeds from the notes to finance the purchase of Titan drillship and to fund a debt service reserve account.
| Issuer: | Transocean Titan Financing Ltd.
|
| Guarantors: | Transocean Ltd. and Triton Titan GmbH
|
| Amount: | $525 million, increased from $500 million
|
| Issue: | Senior secured notes
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| Maturity: | Feb. 1, 2028
|
| Bookrunners: | Morgan Stanley, Citigroup, DNB, Goldman Sachs, Wells Fargo and Credit Agricole
|
| Co-managers: | SR Bank and Standard Bank
|
| Coupon: | 8 3/8%
|
| Price: | Par
|
| Yield: | 8 3/8%
|
| Spread: | 462 bps
|
| First call: | Feb. 1, 2025 at 104.188
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| Mandatory amortization: | 75% of principal amount by maturity, beginning Feb. 1, 2025
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| Trade date: | Jan. 9
|
| Settlement date: | Jan. 17
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| Ratings: | Moody's: B2
|
| S&P: B-
|
| Distribution: | Rule 144A for life and Regulation S
|
| Price talk: | 8½% area
|
| Marketing: | Drive-by
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