Transocean to sell $750 million 8.25-year notes in Wednesday drive-by

By Paul A. Harris

Portland, Ore., Oct. 4 – Transocean Inc. plans to price a $750 million offering of 8.25-year senior guaranteed notes in a quick-to-market Wednesday trade following a mid-morning conference call with investors, according to a syndicate source.

Citigroup Global Markets Inc., Barclays and Wells Fargo Securities LLC are the joint bookrunners for the Rule 144A and Regulation S for life offer.

BNP Paribas, BofA Merrill Lynch, Credit Agricole CIB, Credit Suisse Securities (USA) LLC, DNB Markets, Goldman Sachs & Co., Morgan Stanley & Co and Standard Chartered Bank are the co-managers.

The notes, which are set to mature in January 2026, feature a make-whole call at Treasuries plus 50 basis points for the first three years, then become callable at par plus 75% of the coupon. They also feature a three-year 40% equity clawback and a 101% poison put.

The Houston-based offshore oil and drilling contractor with a registered office in Zug, Switzerland plans to use the proceeds to fully repay its 2½% senior notes due Oct. 15, 2017 upon maturity, to redeem all of its 6% senior notes due March 2018 and its 7 3/8% senior notes due April 2018, fully repay its Eksportfinans loans due January 2018 and for general corporate purposes.

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