Transocean Inc. Announces Repurchase Option of Zero Coupon Convertible Debentures Due May 24, 2020
HOUSTON--(BUSINESS WIRE)--April 25, 2003--Transocean Inc.(NYSE:RIG) today announced that holders of its Zero Coupon ConvertibleDebentures due May 24, 2020 have the option to require Transocean torepurchase their debentures as of May 24, 2003. Each holder of thedebentures has the right to require Transocean to repurchase on May24, 2003 all or any part of such holder's debentures at a repurchaseprice of $628.57 per $1,000 principal amount. Under the terms of thedebentures, Transocean had the option to pay for the debentures withcash, Transocean ordinary shares, or a combination of cash and shares,and has elected to pay for the debentures solely with cash. If alloutstanding debentures are surrendered for repurchase, the aggregatecash repurchase price will be approximately $543.7 million. Transoceanintends to pay the repurchase price by using available cash.
Holders may exercise their option to require Transocean torepurchase their debentures by delivering a repurchase notice to TheBank of New York, the paying agent, before the expiration of theoption at 5:00 p.m., New York City time, on May 24, 2003. However,because that date falls on a Saturday, if a holder exercises itsoption by 10:00 a.m., New York City time, on May 27, 2003, Transoceanwill treat such holder's acceptance as having been made immediatelybefore the expiration of the option.
The debentures are convertible into 8.1566 Transocean ordinaryshares per $1,000 principal amount, subject to adjustment undercertain circumstances.
Transocean plans to file a Tender Offer Statement on Schedule TOwith the Securities and Exchange Commission later today. Transoceanwill make available to debenture holders, through the Depository TrustCompany, documents specifying the terms, conditions and procedures forsurrendering and withdrawing debentures for repurchase. Debentureholders are encouraged to read these documents carefully beforedeciding to exercise their option to require Transocean to repurchasetheir debentures because these documents contain important informationregarding the details of Transocean's obligation to repurchase thedebentures. Holders of the debentures and other interested parties mayobtain a free copy of these statements and other relevant documents atthe SEC's website, www.sec.gov, or from Transocean Inc. at 4 GreenwayPlaza, Houston, Texas 77046, Attn: Investor Relations.
Statements contained in this press release involving the source ofcash to pay the repurchase price, the timing of the filing of theTender Offer Statement, as well as any other statements that are nothistorical facts, are forward-looking statements that involve certainrisks, uncertainties and assumptions. These include but are notlimited to operating hazards and delays, risks associated withinternational operations, actions by customers and other thirdparties, the future price of oil and gas and other factors detailed inthe company's most recent Form 10-K and other filings with theSecurities and Exchange Commission (SEC), which are available free ofcharge on the SEC's website at www.sec.gov. Should one or more ofthese risks or uncertainties materialize, or should underlyingassumptions prove incorrect, actual results may vary materially fromthose indicated.
Transocean Inc. is the world's largest offshore drillingcontractor with more than 170 full or partially owned and managedmobile offshore drilling units, inland drilling barges and otherassets utilized in the support of offshore drilling activitiesworldwide. The company's mobile offshore drilling fleet is consideredone of the most modern and versatile in the world with 13fifth-generation semisubmersibles and drillships, 15 other deepwatersemisubmersibles and drillships, 30 mid-water semisubmersibles, onemid-water drillship and 55 jackup drilling rigs. Transocean Inc.specializes in technically demanding segments of the offshore drillingbusiness, including industry-leading positions in deepwater and harshenvironment drilling services. With a current equity marketcapitalization in excess of $6 billion, the company's ordinary sharesare traded on the New York Stock Exchange under the symbol \"RIG.\"
CONTACT: Transocean Inc., Houston Analyst Contact: Jeffrey L. Chastain, 713/232-7551 or Media Contact: Guy A. Cantwell, 713/232-7647 SOURCE: Transocean Inc.