Transocean said it has amended and restated a credit agreement for its wholly owned subsidiary, Transocean International Limited, and retired $165 million of debt.
Under the new revolving credit facility, the company would push the maturity out to October 2031 from June 2028, while increasing total revolving commitments to $750 million from $510 million. That is a $240 million increase in available commitments, or about 47% more than before. The facility was oversubscribed during syndication, according to the company.
The facility remains guaranteed by Transocean and certain subsidiaries and continues to be secured by drilling rigs and related collateral.
Separately, Transocean fully repaid its 8.00% senior secured notes due 2028 on October 1, 2026. The company said the notes had $165 million of principal outstanding, plus a call premium and accrued interest, and were settled with cash on hand and money from the related debt service reserve account. Transocean said the early retirement should save about $22 million in interest expense through maturity.
The company said the debt move is part of its effort to reduce leverage and simplify the balance sheet. Transocean operates a fleet of 27 mobile offshore drilling units, including 20 ultra-deepwater floaters and seven harsh-environment floaters. Today the company's shares have moved -1.24% to a price of $5.58. Check out the company's full 8-K submission here.
