RIG - Transocean Ltd. Announces Pricing of $325 Million of Secured Notes Due 2028 | Benzinga
STEINHAUSEN, Switzerland, Sept. 26, 2023 (GLOBE NEWSWIRE) -- Transocean Ltd. (NYSE:RIG) announced today that Transocean Aquila Limited ("Transocean Aquila"), a wholly owned indirect subsidiary of Transocean Ltd., has priced an offering of U.S. $325 million in aggregate principal amount of senior secured notes due 2028 (the "Notes") to eligible purchasers pursuant to Rule 144A/Regulation S.
The Notes will be guaranteed by Transocean Ltd., Transocean Inc. and a wholly owned indirect subsidiary that initially will own the Deepwater Aquila and will be secured by a lien on the Deepwater Aquila and certain other assets related to the rig.
The Notes will bear interest at the rate of 8.000% per annum and will be callable after September 30, 2025. The offering is expected to close on or about October 11, 2023, subject to customary closing conditions. If certain collateral and other security are not pledged on or prior to the issuance of the Notes (including the mortgaging of the Deepwater Aquila by Transocean following delivery of the rig), an amount equal to the gross proceeds from this offering will be placed into escrow pursuant to an escrow agreement until the escrow release conditions are satisfied. Transocean Aquila expects to receive aggregate net proceeds of approximately $319 million from the offering, after deducting estimated offering costs.
Transocean Aquila expects to use the net proceeds from the Notes to partially finance the construction, acquisition and improvement or alteration of the Deepwater Aquila (including repaying any indebtedness incurred for that purpose) and to fund the initial debt service reserve.
The Notes have not been and will not be registered under the ...