Published on 10/22/2018 in the Prospect News High Yield Daily.
New Issue: Transocean prices $750 million seven-year guaranteed notes at par to yield 7¼%
By Paul A. Harris
Portland, Ore., Oct. 22 – Transocean Inc. priced a $750 million issue of seven-year senior guaranteed notes (B3/B) at par to yield 7¼% in a Monday drive-by, according to market sources.
The yield printed in the middle of official yield talk in the 7¼% area, which was also preliminary talk.
Citigroup Global Markets Inc. was the left bookrunner. Wells Fargo Securities LLC, Goldman Sachs & Co., DNB Markets, Morgan Stanley & Co. and Credit Agricole CIB were the joint bookrunners.
The Steinhausen, Switzerland-based provider of offshore contract drilling services for oil and gas wells plans to use the proceeds to pay a portion of its merger with Ocean Rig UDW.
| Issuer: | Transocean Inc.
|
| Amount: | $750 million
|
| Maturity: | Nov. 1, 2025
|
| Securities: | Senior guaranteed notes
|
| Left bookrunner: | Citigroup Global Markets Inc.
|
| Joint bookrunners: | Wells Fargo Securities LLC, Goldman Sachs & Co., DNB Markets, Morgan Stanley & Co., Credit Agricole CIB
|
| Co-managers: | SEB, Barclays, SpareBank, NIBC
|
| Coupon: | 7¼%
|
| Price: | Par
|
| Yield: | 7¼%
|
| Spread: | 406 bps
|
| First call: | Make-whole call at Treasuries plus 50 bps until Nov. 1, 2021, then callable at 103.625
|
| Equity clawback: | 40% at 107.25 until Nov. 1, 2021
|
| Trade date: | Oct. 22
|
| Settlement date: | Oct. 25
|
| Ratings: | Moody's: B3
|
| S&P: B
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 7¼% area
|
| Marketing: | Quick to market
|
© 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.
