Transocean holders convert $490,000 convertibles due 2037

By Angela McDaniels

Tacoma, Wash., Feb. 26 - Transocean Ltd. received conversion notices from holders of $490,000 of Transocean Inc.'s $6.6 billion convertible senior notes due 2037, according to the company's 10-K report for 2008 filed with the Securities and Exchange Commission on Thursday.

Holders had the right to convert their notes between Dec. 3 and Feb. 3. The right was triggered when Transocean Ltd. provided a guarantee for the convertibles in December and assumed the obligation to deliver shares upon conversion.

Transocean Ltd. has elected to deliver cash in lieu of shares and expects to pay a total of $150,000 to the converting holders.

The conversion rate is 5.931 shares per $1,000 principal amount.

The convertibles were issued in three series. The coupon is 1.625% for the series A convertibles, 1.5% for the series B convertibles and 1.5% for the series C convertibles.

Transocean Ltd. provides offshore contract drilling services for oil and gas wells and is based in Zug, Switzerland. Transocean Inc. is incorporated in the Cayman Islands.

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