Transocean to price $2.5 billion of senior notes in three tranches

By Andrea Heisinger

Omaha, Dec. 3 - Transocean Inc. announced Monday it will price $2.5 billion of senior notes in three tranches, according to a release from the company.

The issue will likely price later this week, an informed source said.

It will consist of a five-, 10- and 30-year tranche.

The company will also issue $6 billion in 30-year convertible senior notes.

Bookrunners are Goldman Sachs and Lehman Brothers, with Citigroup also a bookrunner on the five-year tranche and J.P. Morgan a bookrunner on the 10- and 30-year tranches.

Proceeds will be used to repay a portion of outstanding borrowings under the company's $15 billion bridge loan facility incurred to fund cash payments to shareholders in connection with the company's recent reclassification of its ordinary shares and merger with GlobalSantaFe Corp.

Transocean provides offshore contract drilling for oil and gas wells and is based in Houston.

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