Transocean eyed as exchange offers get underway; Hertz notes trade lower in secondary

By James McCandless

San Antonio, Aug. 12 – Keeping up the trend established earlier in the week, the distressed space continued to focus on the energy and travel sectors.

Transocean Ltd.’s notes varied in direction as a ratings agency put the company on notice after commencing exchange offers for 11 series of notes.

The 6½% senior notes due 2020 moved up 4½ points to close at 99½ bid. The 7½% senior notes due 2031 declined by ¾ point to close at 28½ bid.

During the day’s activity, S&P Global Ratings affirmed its CCC+ ratings for the Steinhausen, Switzerland-based contract driller’s unsecured guaranteed debt and CCC issue-level ratings on its senior unsecured debt.

Nearly all of the unsecured debt ratings were placed on CreditWatch with negative implications.

On Monday, wholly owned subsidiary Transocean Inc. began offers to exchange 11 series of existing notes for up to $750 million of new notes, Prospect News reported.

S&P considers the offer a distressed exchange.

Elsewhere, Hertz Global Holdings, Inc.’s issues drifted lower after news that it was approved to use cash collateral to repay its sidecar loan.

The 6¼% senior notes due 2022 dipped 2¼ points to close at 34¾ bid. The 5½% senior notes due 2024 lost 1¼ points to close at 36 bid.

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