Transocean unit gets default notice under $300 million of 7% notes

By Susanna Moon

Chicago, Dec. 8 – Transocean Ltd. said indirect subsidiary Global Marine Inc. received a notice of default under its $300 million of outstanding 7% notes due June 2028.

Wilmington Trust Co., as trustee, filed a lawsuit against Global Marine on Nov. 28 seeking a declaratory judgment that the issuer is in default under the notes indenture, according to an 8-K filing with the Securities and Exchange Commission.

The company said it “disagrees with the assertions in the lawsuit and believes that Global Marine is in compliance with the indenture and has meritorious defenses against these allegations, although it can make no assurance regarding the outcome of the lawsuit, including the actual amount that would be due in the event that the lawsuit is successful.”

The notes are neither guaranteed by nor recourse to the company or other subsidiaries.

The acceleration of the amounts due under the notes indenture could result in an event of default under the company’s undrawn $3 billion revolving credit facility without a waiver from lenders, the filing noted.

The company said it “intends to vigorously defend the lawsuit.”

Transocean is a Houston-based offshore contract driller with a registered office in Zug, Switzerland.

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