Transocean merger sees company's bonds move 15 bps wider; investment-grade trading still slow

By Andrea Heisinger

Omaha, July 23 - Transocean Inc. bonds were trading 15 basis points wider after its announced merger with GlobalSantaFe Corp. Monday.

The quoted widening was specifically for Transocean's 7½% notes due 2031, a source said..

The merger gives the combined company, to be known as Transocean Inc., a value of about $53 billion.

Transocean is the world's largest offshore drilling contractor. GlobalSantaFe is one of the largest offshore oil and gas drilling contractors and provider of drilling management services.

There was virtually no trading of cash bonds to begin the week, according to a market source.

"The cash market is puking," the source said. "There are only sellers out there."

They pointed out the same thing is happening in other markets, with a large glut of high-yield bonds out there and credit spreads widening.

"No one's willing to get in front of the market it seems," the source said.

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