Transocean Announces Pricing of Senior Notes
Sep 10, 2012 (Marketwire via COMTEX) --Transocean Ltd. (
Transocean will have the right to redeem all or part of the Senior Notes at any time prior to maturity at a redemption price equal to 100% of the principal amount plus accrued and unpaid interest and, except, in the case of the 3.800% Senior Notes due 2022, after July 15, 2022, a "make-whole premium."
Transocean Inc. intends to use the net proceeds from the offering to fund all or part of the costs associated with the construction of four newbuild drillships. Transocean is currently in discussions with a major integrated international oil company for the construction of, and associated drilling contracts for, four ultra-deepwater newbuild drillships. To the extent Transocean does not enter into the drilling contracts with the customer, and does not construct the newbuilds or, to the extent it does not require the full amount of the proceeds for construction of the drillships, Transocean would instead apply the net proceeds from this offering to the repayment of debt and for general corporate purposes outside of Switzerland. Pending application of the net proceeds from the sale of the Senior Notes, Transocean Inc. intends to invest such proceeds in cash or cash equivalents.
The Senior Notes will be issued under a shelf registration statement filed by Transocean Ltd. and Transocean Inc. with the Securities and Exchange Commission on September 16, 2010, which became automatically effective.
Barclays Capital Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Wells Fargo Securities, LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated and DNB Markets, Inc. are acting as joint book-running managers in the offering.
This press release is neither an offer to sell nor a solicitation of an offer to buy the securities described herein, nor shall there be any sale of these securities in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. The offering of these securities will be made only by means of a prospectus and related prospectus supplement. The Senior Notes may not be publicly offered, sold or advertised, directly or indirectly, in Switzerland. When available, copies of the prospectus and related prospectus supplement in respect of any of these securities may be obtained from Barclays Capital Inc., c/o Broadridge Financial Solutions, 1155 Long Island Avenue, New York, NY 11717, via telephone at 1-888-603-5847, or by e-mailing: Barclaysprospectus@broadridge.com; Citigroup Global Markets Inc., Attention: Prospectus Department, Brooklyn Army Terminal, 140 58th Street, 8th Floor, Brooklyn, NY 11220, or via telephone at 1-877-858-5407; J.P. Morgan Securities LLC, 383 Madison Avenue, New York, New York 10179, Attention: Investment Grade Syndicate Desk, or via telephone at 1-212-834-4533; and Wells Fargo Securities, LLC, Attention: Capital Markets Client Support, 1525 West W.T. Harris Blvd., Charlotte, North Carolina 28262, via telephone at 1-800-326-5897, or by e-mailing: cmClientsupport@wellsfargo.com.
Statements included in this news release regarding the timing, use of proceeds, the potential newbuilds, the contracts associated with the newbuilds and other aspects of the proposed offering are forward-looking statements that involve certain assumptions. These statements involve risks and uncertainties including, but not limited to, market conditions, closing conditions, entry into a binding agreement regarding the newbuilds, Transocean's results of operations and other factors detailed in "Risk Factors" and elsewhere in Transocean's filings with the Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize (or the other consequences of such a development worsen), or should underlying assumptions prove incorrect, actual outcomes may vary materially from those forecasted or expected. Transocean disclaims any intention or obligation to update publicly or revise such statements, whether as a result of new information, future events or otherwise.
Transocean is a leading international provider of offshore contract drilling services for oil and gas wells. The company specializes in technically demanding sectors of the global offshore drilling business with a particular focus on deepwater and harsh environment drilling services, and believes that it operates one of the most versatile offshore drilling fleets in the world.
At September 10, 2012, Transocean owns or has partial ownership interests in, and operates a fleet of, 115 mobile offshore drilling units consisting of 48 High-Specification Floaters (Ultra-Deepwater, Deepwater and Harsh-Environment drilling rigs), 25 Midwater Floaters, nine High-Specification Jackups, 32 Standard Jackups and one swamp barge. Included in the 115 drilling units, the company has 32 Standard Jackups and one swamp barge classified as discontinued operations. An additional 12 Standard Jackups have been classified as held for sale. We have two Ultra-Deepwater Drillships and three High-Specification Jackups under construction.