Transocean Ltd. Announces Pricing of Senior Notes
ZUG, SWITZERLAND, Sep 16, 2010 (MARKETWIRE via COMTEX) --
Transocean Ltd. (NYSE: RIG) (SIX: RIGN) today announced that itswholly-owned subsidiary, Transocean Inc., priced a public offering of$1.1 billion of 4.95% Senior Notes due 2015, issued at a price of99.948% of the principal amount, and $0.9 billion of 6.5% SeniorNotes due 2020, issued at a price of 99.93% of the principal amount(together, the \"Senior Notes\"). Transocean Ltd. will fully andunconditionally guarantee the Senior Notes. The offering is expectedto close on September 21, 2010, subject to the satisfaction ofclosing conditions.
Transocean will have the right to redeem all or part of the SeniorNotes at any time prior to maturity at a redemption price equal to100% of the principal amount plus accrued and unpaid interest and a\"make-whole premium.\"
Transocean Inc. intends to use the net proceeds from this offering(1) to fund the expected repurchase of its 1.625% Series AConvertible Senior Notes due December 2037 that holders of the SeriesA Convertible Senior Notes may require it to repurchase in December2010 and (2) to fund the intended repurchase of a portion of its1.50% Series B Convertible Senior Notes due 2037 and its 1.50% SeriesC Convertible Senior Notes due December 2037 through repurchases inthe open market, in privately negotiated transactions or in tenderoffers. Transocean Inc. plans to use the remainder, if any, of suchnet proceeds for general corporate purposes in its operations,including but not limited to capital expenditures, acquisitions orrepayment or refinancing of debt. Pending application of the netproceeds from the sale of the Senior Notes, Transocean Inc. intendsto invest such proceeds in short-term investments. Goldman, Sachs &Co., J.P. Morgan Securities LLC and Citigroup Global Markets Inc. arejoint book-running managers for the Senior Notes offering.
The Senior Notes will be issued under a shelf registration statementfiled by Transocean Ltd. and Transocean Inc. with the Securities andExchange Commission on September 16, 2010, which became automaticallyeffective.
This press release is neither an offer to sell nor a solicitation ofan offer to buy the securities described herein, nor shall there beany sale of these securities in any jurisdiction in which such anoffer, solicitation or sale would be unlawful prior to registrationor qualification under the securities laws of any such jurisdiction.The offering of these securities will be made only by means of aprospectus and related prospectus supplement. The Senior Notes maynot be publicly offered, sold or advertised, directly or indirectly,in Switzerland. When available, copies of the prospectus and relatedprospectus supplement in respect of any of these securities may beobtained from Goldman, Sachs & Co., Prospectus Department, 200 WestStreet, New York, New York 10282, telephone: 1-866-471-2526,facsimile: (212) 902-9316 or by firstname.lastname@example.org, J.P. Morgan Securities LLC, 383Madison Avenue, New York, New York 10179, Attn: High Grade SyndicateDesk or via fax at (212) 834-6081 and Citigroup Global Markets Inc.,Brooklyn Army Terminal, 140 58th Street, 8th Floor, Brooklyn, NewYork 11220, via telephone at 1 (800) 831-9146 or email email@example.com.
Statements included in this news release regarding purchases ofConvertible Senior Notes and the timing, amounts, use of proceeds andother aspects of the proposed offering are forward-looking statementsthat involve certain assumptions. These statements involve risks anduncertainties including, but not limited to, market conditions,closing conditions, actions by holders of the Convertible SeniorNotes, Transocean's results of operations and other factors detailedin \"Risk Factors\" and elsewhere in Transocean's filings with theSecurities and Exchange Commission. Should one or more of these risksor uncertainties materialize (or the other consequences of such adevelopment worsen), or should underlying assumptions proveincorrect, actual outcomes may vary materially from those forecastedor expected. Transocean disclaims any intention or obligation toupdate publicly or revise such statements, whether as a result of newinformation, future events or otherwise.
Transocean is the world's largest offshore drilling contractor andthe leading provider of drilling management services worldwide. Witha fleet of 139 mobile offshore drilling units plus threeultra-deepwater newbuild drillships under construction, Transocean'sfleet is considered one of the most modern and versatile in the worlddue to its emphasis on technically demanding segments of the offshoredrilling business. Transocean owns or operates a contract drillingfleet of 45 High-Specification Floaters (Ultra-Deepwater, Deepwaterand Harsh-Environment semisubmersibles and drillships), 26 MidwaterFloaters, 10 High-Specification Jackups, 55 Standard Jackups andother assets utilized in the support of offshore drilling activitiesworldwide.
SOURCE: Transocean Ltd.