By Andrea Heisinger
New York, Nov. 30 - Transocean Inc. sold $2.5 billion of senior notes (Baa3/BBB-/BBB-) in three tranches on Wednesday, an informed source said.
The $1 billion of 5.05% five-year notes was priced at 99.906 to yield 5.071% with a spread of Treasuries plus 410 basis points. The notes were sold tighter than talk of 415 bps.
A second tranche was $1.2 billion of 6.375% 10-year notes sold at 99.946 to yield 6.382% with a spread of Treasuries plus 430 bps. The tranche was priced tighter than guidance of 435 bps.
Finally, there was $300 million of 7.35% 30-year bonds priced at 99.996 to yield 7.35% with a spread of 430 bps over Treasuries. The bonds were sold tighter than talk of 435 bps.
All of the tranches have a make-whole call of Treasuries plus 50 bps.
Barclays Capital Inc., Credit Suisse Securities (USA) LLC and Mitsubishi UFJ Securities (USA) Inc. were the active bookrunners. Passive bookrunners were Citigroup Global Markets Inc., J.P. Morgan Securities LLC and Wells Fargo Securities LLC.
About $659 million of the proceeds will be used to fund the expected repurchase of series B convertible notes that holders may require repurchase of in December. Proceeds may also be used to refinance outstanding commercial paper as it comes due.
The securities are guaranteed by Transocean Ltd.
Transocean Inc. last priced bonds in a $2 billion sale in two tranches on Sept. 16, 2010. The 4.95% five-year notes from that offering priced at 350 bps over Treasuries while the 6.5% 10-year notes priced at 375 bps over Treasuries.
The offshore oil and gas drilling contractor is based in Zug, Switzerland.
| Issuer: | Transocean Inc.
|
| Guarantor: | Transocean Ltd.
|
| Issue: | Senior notes
|
| Amount: | $2.5 billion
|
| Bookrunners: | Barclays Capital Inc., Credit Suisse Securities (USA) LLC, Mitsubishi UFJ Securities (USA) Inc. (active), Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Wells Fargo Securities LLC (passive)
|
| Trade date: | Nov. 30
|
| Settlement date: | Dec. 5
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB-
|
| Fitch: BBB-
|
|
|
| Five-year notes
|
| Amount: | $1 billion
|
| Maturity: | Dec. 15, 2016
|
| Coupon: | 5.05%
|
| Price: | 99.906
|
| Yield: | 5.071%
|
| Spread: | Treasuries plus 410 bps
|
| Call: | Make-whole at Treasuries plus 50 bps
|
| Price talk: | 415 bps
|
|
|
| 10-year notes
|
| Amount: | $1.2 billion
|
| Maturity: | Dec. 15, 2021
|
| Coupon: | 6.375%
|
| Price: | 99.946
|
| Yield: | 6.382%
|
| Spread: | Treasuries plus 430 bps
|
| Call: | Make-whole at Treasuries plus 50 bps
|
| Price talk: | 435 bps
|
|
|
| 30-year bonds
|
| Amount: | $300 million
|
| Maturity: | Dec. 15, 2041
|
| Coupon: | 7.35%
|
| Price: | 99.996
|
| Yield: | 7.35%
|
| Spread: | Treasuries plus 430 bps
|
| Call: | Make-whole at Treasuries plus 50 bps
|
| Price talk: | 435 bps
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
