Transocean posts early tenders for $943.4 million of three note series

By Susanna Moon

Chicago, July 19 – Transocean Ltd. announced the early tender results of the offer by wholly owned subsidiary Transocean Inc. to purchase up to $1 billion principal amount of three series of notes.

Transocean will accept for purchase all of the notes tendered as of 5 p.m. ET on July 18, the early tender date, with settlement on July 21, according to a company notice.

The breakdown for the early tendered notes is as follows, with the notes listed in order of priority acceptance level and the total payment for each $1,000 principal amount:

• $343,964,000 of the $887,164,000 outstanding 6½% senior notes due 2020 with a total purchase price of $945;

• $464,203,000 of the $1,105,170,000 outstanding 6 3/8% senior notes due 2021 with a total purchase price of $900 and a current coupon of 8 1/8%; and

• $135,261,000 of the $696.5 million outstanding 3.8% senior notes due 2022 with a total purchase price of $760, a current coupon of 5.05% that is expected to rise to 5.55% on Oct. 15 and a tender sub-cap of $200 million.

As noted before, the total amount includes an early tender premium of $30 per $1,000 principal amount of notes tendered by the early deadline.

Holders who tender after the early deadline will receive the total payment less the early premium.

The tender offers will continue until 11:59 p.m. ET on Aug. 1.

The company also will pay accrued interest to but excluding the settlement date.

Tendered notes may no longer be withdrawn, as of the early deadline.

The company said it may increase the maximum tender amount without extending withdrawal rights.

The offers are not contingent on any minimum amount of notes being tendered but do require the company to raise enough proceeds through one or more issues of debt to fund the offer.

As reported, Transocean priced a downsized and restructured $1.25 billion issue of 9% seven-year senior notes at 97.5 to yield 9.499% on July 7, downsized from $1.5 billion.

Goldman Sachs & Co. (800 828-3182 or 212 902-6941) and Morgan Stanley & Co. LLC (800 624-1808 or 212 761-1057) are the dealer managers. D.F. King & Co., Inc. (800 622-1649, 212 269-5550 or transocean@dfking.com) is the depositary and the information agent.

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

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