Transocean gets $3 billion restated revolving credit facility due 2019

By Marisa Wong

Madison, Wis., July 2 – Transocean Inc., a wholly owned subsidiary of Transocean Ltd., entered into an amended and restated credit agreement on Monday for a $3 billion five-year revolving credit facility, according to an 8-K filing with the Securities and Exchange Commission.

J.P. Morgan Securities LLC, Citigroup Global Markets Inc., DNB Markets, Inc., Bank of Tokyo-Mitsubishi UFJ, Ltd., Credit Agricole Corporate and Investment Bank and Wells Fargo Securities, LLC are the joint lead arrangers and joint bookrunners. JPMorgan Chase Bank, NA is the administrative agent, Citibank, NA and DNB Bank ASA, New York Branch are co-syndication agents, and Bank of Tokyo-Mitsubishi UFJ, Credit Agricole Corporate and Investment Bank and Wells Fargo Bank, NA are co-documentation agents.

The revolving credit facility amends and restates the company’s existing credit agreement dated Nov. 1, 2011.

The new facility is set to expire on June 28, 2019.

The facility includes a $1 billion sublimit for the issuance of letters of credit, and all borrowings are guaranteed by Transocean Ltd.

Interest is equal to Libor plus an applicable margin of 112.5 basis points to 200 bps, depending on the company’s debt rating.

There is also a facility fee based on the debt rating of 15 bps to 35 bps.

The facility includes a covenant imposing a maximum debt to tangible capitalization ratio of 0.6 to 1.0.

In connection with the amendment, Triton Nautilus Assets Leasing GmbH, another wholly owned subsidiary of Transocean Ltd., terminated its existing secured credit agreement dated Oct. 25, 2012, effective Monday.

No borrowings were outstanding under the three-year secured revolver, but Triton repaid all accrued fees and expenses in connection with the termination.

Transocean is an offshore oil and drilling contractor based in Zug, Switzerland.

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