Transocean Closes on $1 Billion Five-Year Secured Revolving Credit Facility
June 27, 2018
STEINHAUSEN, Switzerland, June 27, 2018 (GLOBE NEWSWIRE) -- Transocean Ltd. (NYSE:RIG) announced today that Transocean Inc. closed a $1 billion, five-year, senior secured revolving credit facility (“the new RCF”), with Transocean Ltd. and certain of its subsidiaries as guarantors thereunder. The new RCF includes an accordion feature that permits an increase in capacity to $1.5 billion, subject to additional lender commitments, and replaces the company’s existing revolving credit facility.
“We have further extended our liquidity runway with our new revolving credit facility and the additional private offering of secured debt separately announced today, proceeds of which are to be used to partially refinance indebtedness associated with the Songa acquisition,” said Mark Mey, Executive Vice President and Chief Financial Officer. “Additionally, these latest transactions enable us to maintain significant financial flexibility and strategic optionality as the offshore market recovers.”
Certain intermediate holding companies of Transocean Ltd. that own interests in the company’s fleet of rigs have guaranteed the obligations under the new RCF. In addition, two of the company’s harsh environment semisubmersibles, Transocean Spitsbergen and Transocean Barents, and three of the company’s ultra-deepwater drillships, Deepwater Asgard, Deepwater Invictus, and Discoverer Inspiration, and related assets are pledged as collateral.
Citibank, N.A. is acting as Administrative Agent, and Wells Fargo Securities, LLC, acted as Syndication Agent, for the new RCF.
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.
Transocean owns or has partial ownership interests in, and operates a fleet of 43 mobile offshore drilling units consisting of 24 ultra-deepwater floaters, 12 harsh environment floaters, two deepwater floaters and five midwater floaters. In addition, Transocean is constructing two ultra-deepwater drillships; and one harsh environment semisubmersible that the company has a one-third interest. The company also operates one high-specification jackup that was under a drilling contract when the rig was sold, and the company will continue to operate the jackup until completion or novation of the drilling contract.
The statements described in this press release that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements contain words such as "possible," "intend," "will," "if," "expect," or other similar expressions. Forward-looking statements are based on management's current expectations and assumptions, and are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. As a result, actual results could differ materially from those indicated in these forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, estimated duration of customer contracts, contract dayrate amounts, future contract commencement dates and locations, planned shipyard projects and other out-of-service time, sales of drilling units, timing of the company's newbuild deliveries, operating hazards and delays, risks associated with international operations, actions by customers and other third parties, the future prices of oil and gas, the intention to scrap certain drilling rigs, the expected benefits from the acquisition of Songa Offshore SE ("Songa"), the ability to successfully integrate the Transocean and Songa businesses and other factors, including those and other risks discussed in the company's most recent Annual Report on Form 10-K for the year ended December 31, 2017, and in the company's other filings with the SEC, which are available free of charge on the SEC's website at: www.sec.gov. 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 results may vary materially from those indicated or expressed or implied by such forward-looking statements. All subsequent written and oral forward-looking statements attributable to the company or to persons acting on our behalf are expressly qualified in their entirety by reference to these risks and uncertainties. You should not place undue reliance on forward-looking statements. Each forward-looking statement speaks only as of the date of the particular statement, and we undertake no obligation to publicly update or revise any forward-looking statements to reflect events or circumstances that occur, or which we become aware of, after the date hereof, except as otherwise may be required by law. All non-GAAP financial measure reconciliations to the most comparative GAAP measure are displayed in quantitative schedules on the company's website at: www.deepwater.com.
This press release, or referenced documents, do not constitute an offer to sell, or a solicitation of an offer to buy, any securities, and do not constitute an offering prospectus within the meaning of article 652a or article 1156 of the Swiss Code of Obligations. Investors must rely on their own evaluation of Transocean and its securities, including the merits and risks involved. Nothing contained herein is, or shall be relied on as, a promise or representation as to the future performance of Transocean.