Transocean Ltd. has announced the commencement of a private offering of senior notes due 2029 and 2031, with an aggregate principal amount of $1,500,000,000. The purpose of the offering is to fund the tender offers for outstanding 11.50% senior guaranteed notes due 2027 and 7.25% senior notes due 2025, along with the redemption of other priority guaranteed notes.
The company's fleet consists of 36 mobile offshore drilling units, including 28 ultra-deepwater floaters and eight harsh environment floaters, with the addition of one ultra-deepwater drillship under construction.
It's important to note that the notes have not been registered under the U.S. Securities Act of 1933 and may not be offered or sold in the United States except pursuant to an exemption from the registration requirements.
The press release emphasizes that this is not an offer to sell or a solicitation of an offer to buy any of the notes in the United States. Additionally, it does not constitute an offer, solicitation, or sale of any securities in any jurisdiction where such offering or sale would be unlawful.
The offering of these senior notes, the tender offers for outstanding notes, and the redemption of other priority guaranteed notes reflect Transocean's strategic financial decision-making and its commitment to optimizing its capital structure. The market has reacted to these announcements by moving the company's shares -3.3% to a price of $6.21. For the full picture, make sure to review Transocean's 8-K report.
