Shares of offshore drilling services provider Transocean (NYSE: RIG) started out on a very positive note on Aug. 24, rising as much as 13% in the first hour of trading. The big driver was a news release outlining the early results from a proposed debt exchange.
Transocean has a sizable amount of debt coming due in 2021 and 2022. With the energy sector in a deep downturn, and the company bleeding red ink because of it, those maturities presented a notable problem. To deal with it, the company offered bond holders a debt exchange, which would push the maturity out to 2027. That buys the company valuable breathing room. Based on the company's news release, it looks like around $1.1 billion worth of bonds will be traded in.
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