Transocean Inc. Announces Redemption of Its 9.5% Notes Due 2008
HOUSTON--(BUSINESS WIRE)--Feb. 27, 2004--Transocean Inc.(NYSE:RIG) today announced that it has called its 9.5% Senior Notesdue December 2008 for redemption on March 30, 2004. The face value ofthe notes is $289.8 million, and the cost to redeem the notes isexpected to be approximately $366.3 million, plus accrued and unpaidinterest. The redemption price is equal to the principal amount of andaccrued and unpaid interest on the notes plus a \"make-whole\" premiumdetermined by reference to a fixed spread of 50 basis points over aspecified U.S. Treasury yield. Transocean expects to recognize a losson retirement of the notes of approximately $24.1 million and plans touse existing cash on hand to fund the redemption. The redemption doesnot affect the 9.5% Senior Notes due December 2008 of TODCO, apublicly-traded drilling company in which Transocean owns a majorityinterest.
Statements regarding estimated cost, loss on retirement andfunding of the redemption, as well as any other statements that arenot historical facts in this release are forward-looking statementsthat involve certain risks, uncertainties and assumptions. Theseinclude but are not limited to the actual U.S. Treasury yield used tocalculate the make-whole premium, adequacy of sources of liquidity andfactors detailed in Transocean's filings with the Securities andExchange Commission. Should one or more of these risks oruncertainties materialize, or should underlying assumptions proveincorrect, actual results may vary materially from those indicated.
Transocean Inc. is the world's largest offshore drillingcontractor with full or partial ownership in 96 mobile offshoredrilling units, excluding the 70-rig fleet of TODCO, a publicly-tradeddrilling company in which Transocean Inc. owns a majority interest.The company's mobile offshore drilling fleet is considered one of themost modern and versatile in the world due to its concentration intechnically demanding segments of the offshore drilling business,including industry-leading positions in high-specification deepwaterand harsh environment drilling units. The company's fleet consists of32 High-Specification semisubmersibles and drillships (floaters), 26Other Floaters, 26 Jackup Rigs and other assets utilized in thesupport of offshore drilling activities worldwide. With a currentequity market capitalization in excess of $9 billion, TransoceanInc.'s ordinary shares are traded on the New York Stock Exchange underthe 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.