Transocean Inc. Announces Redemption of Its 6.95% Senior Notes Due 2008
HOUSTON--(BUSINESS WIRE)--Feb. 18, 2005--Transocean Inc.(NYSE:RIG) today announced that it has called its 6.95% Senior Notesdue April 2008 for redemption on March 21, 2005. The face value of thenotes is $247.8 million, and the cost to redeem the notes is expectedto be approximately $279.8 million, including accrued and unpaidinterest. The redemption price also includes a make-whole premiumdetermined by reference to a fixed spread of 20 basis points over aspecified U.S. Treasury yield referenced in the \"Federal ReserveStatistical Release H.15 (519)\" to be published March 14, 2005.Transocean expects to recognize a loss on retirement of the notesduring the first quarter of 2005 of approximately $10.8 million andplans to use existing cash balances to fund the redemption. Theredemption does not affect the 6.95% Senior Notes due April 2008 ofTODCO, a publicly traded company in which Transocean owns an equityinterest.
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 a fleet of 93 mobile offshore drilling units. Thecompany's mobile offshore drilling fleet, consisting of a large numberof high-specification deepwater and harsh environment drilling units,is considered one of the most modern and versatile in the world due toits emphasis on technically demanding sectors of the offshore drillingbusiness. The company's fleet consists of 32 High-SpecificationFloaters (semisubmersibles and drillships), 24 Other Floaters, 26Jackup Rigs and other assets utilized in the support of offshoredrilling activities worldwide. With a current equity marketcapitalization in excess of $15 billion, Transocean Inc.'s ordinaryshares are traded on the New York Stock Exchange under the symbol\"RIG.\"
CONTACT: Transocean Inc., Houston
Analyst Contact: Jeffrey L. Chastain, 713-232-7551
Media Contact: Guy A. Cantwell, 713-232-7647
SOURCE: Transocean Inc.