Caledonia to sell $350 million second-lien secured bonds to Transocean

By Lisa Kerner

Charlotte, N.C., Oct. 16 – Caledonia Offshore Drilling Co. proposes to make an unregistered offering of second-lien senior secured bonds to raise $350 million to finance drilling rigs, according to a form 8-K filed with the Securities and Exchange Commission.

Transocean Ltd., or one of its affiliates, intends to purchase all of the second-lien senior secured bonds that will be issued by Caledonia, a Transocean subsidiary.

Proceeds, along with funds from a new first-lien credit facility, will be used to buy North Sea drilling rigs from Transocean.

In addition, Transocean Ltd. and Transocean Inc. intend to proceed with an unregistered offering of shares of Caledonia to raise between $125 million and $185 million, the filing stated. The shares will be sold to eligible investors in Norway, the United States and internationally.

Both transactions are expected to close in the fourth quarter of 2014.

Transocean said they are part of its strategy to maximize the value of non-core rigs.

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

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