Transocean Inc. Announces Redemption of Its 6.75% Senior Notes Due 2005
HOUSTON--(BUSINESS WIRE)--Sept. 24, 2004--Transocean Inc.(NYSE:RIG) today announced that it has called its 6.75% Senior Notesdue April 2005 for redemption on October 25, 2004. The face value ofthe notes is $342.3 million, and the cost to redeem the notes isexpected to be approximately $351.2 million, including accrued andunpaid interest. The redemption price also includes a make-wholepremium determined by reference to a fixed spread of 20 basis pointsover a specified U.S. Treasury yield. Transocean expects to recognizea loss on retirement of the notes during the fourth quarter of 2004 ofapproximately $5.0 million and plans to use existing cash on hand tofund the redemption. The redemption does not affect the 6.75% SeniorNotes due April 2005 of TODCO, a publicly traded company in whichTransocean owns a majority voting interest.
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 95 mobile offshoredrilling units, excluding the 70-rig fleet of TODCO, a publicly tradedcompany in which Transocean Inc. owns a majority voting interest. Thecompany's mobile offshore drilling fleet is considered one of the mostmodern and versatile in the world due to its emphasis on technicallydemanding segments of the offshore drilling business, includingindustry-leading positions in high-specification deepwater and harshenvironment drilling units. The company's fleet consists of 32High-Specification Floaters (semisubmersibles and drillships), 25Other Floaters, 26 Jackup Rigs and other assets utilized in thesupport of offshore drilling activities worldwide. With a currentequity market capitalization in excess of $10 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.