Transocean accepts tenders for $981.17 million notes from three series

By Marisa Wong

Morgantown, W.Va., Aug. 2 – Transocean Ltd. announced the final results of the offer by wholly owned subsidiary Transocean Inc. to purchase up to $1 billion principal amount of three series of notes.

As of the expiration of the tender offer at 11:59 p.m. ET on Aug. 1, holders had tendered the following:

• A total of $348.4 million of the $887,164,000 outstanding 6½% senior notes due 2020;

• A total of $475,849,000 of the $1,105,170,000 outstanding 6 3/8% senior notes due 2021, which have a current coupon of 8 1/8%; and

• A total of $156,923,000 of the $696.5 million outstanding 3.8% senior notes due 2022, which have a current coupon of 5.05% that is expected to rise to 5.55% on Oct. 15 and a tender sub-cap of $200 million.

Of those amounts, $343,964,000 of the 2020 notes, $464,203,000 of the 2021 notes and $134,761,000 of the 2022 notes were tendered as of 5 p.m. ET on July 18, the early tender date, and previously settled.

Transocean has accepted for purchase all of the notes tendered under the offer, according to a Tuesday press release.

The total payment for each $1,000 principal amount is $945 for the 2020 notes, $900 for the 2021 notes and $760 for the 2022 notes. As noted before, the total amount includes an early tender premium of $30 per $1,000 principal amount of notes tendered by the early deadline.

Holders who tender after the early deadline will receive the total payment less the early premium.

The company also will pay accrued interest to but excluding the settlement date.

The offers were not contingent on any minimum amount of notes being tendered but did require the company to raise enough proceeds through one or more issues of debt to fund the offer.

As reported, Transocean priced a downsized and restructured $1.25 billion issue of 9% seven-year senior notes at 97.5 to yield 9.499% on July 7, downsized from $1.5 billion.

Goldman Sachs & Co. (800 828-3182 or 212 902-6941) and Morgan Stanley & Co. LLC (800 624-1808 or 212 761-1057) are the dealer managers. D.F. King & Co., Inc. (800 622-1649, 212 269-5550 or transocean@dfking.com) is the depositary and the information agent.

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

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