Transocean prices $500 million in senior notes at 7.875%

STEINHAUSEN, Switzerland - Offshore drilling contractor Transocean Ltd. (NYSE:RIG), currently trading at $3.12 with a market capitalization of $3.32 billion, announced Tuesday that its wholly owned subsidiary, Transocean International Limited, has priced a $500 million private offering of Senior Priority Guaranteed Notes due 2032 with an interest rate of 7.875% per annum. According to InvestingPro data, the company trades at a notably low Price/Book ratio of 0.35x.

The notes will be fully guaranteed on a senior unsecured basis by Transocean Ltd. and certain subsidiaries. The offering is expected to close around October 15, subject to customary closing conditions, according to a company press release.

Transocean plans to use the proceeds, along with released restricted cash related to its 6.875% Senior Secured Notes due 2027, to refinance existing debt. This includes redeeming the remaining principal of its 8.00% Senior Notes due February 2027, after a previously announced $415 million redemption, and repaying the outstanding 6.875% Senior Secured Notes due 2027.

Additionally, the company will fund a cash tender offer of up to $50 million for its outstanding 7.35% Senior Notes due December 2041 and 7.00% Notes due June 2028.

The notes are being offered to eligible purchasers under Rule 144A/Regulation S and have not been registered under the U.S. Securities Act of 1933, limiting their availability in the United States to exempted transactions.

Transocean owns or partially owns and operates a fleet of 27 mobile offshore drilling units, including 20 ultra-deepwater floaters and seven harsh environment floaters, specializing in technically demanding sectors of offshore drilling.

In other recent news, Transocean Ltd. has been actively engaging in financial maneuvers to strengthen its liquidity position. The company successfully raised approximately $195 million through share issuances in July and August 2025, addressing most of its 2025 exchangeable bonds, with only $37 million remaining outstanding. Additionally, Transocean completed another equity issuance on September 26, generating $421 million in net proceeds. In a related move, Transocean has launched a private offering of $500 million in Senior Priority Guaranteed Notes due 2032, guaranteed on a senior unsecured basis by the company and certain subsidiaries.

Furthermore, Transocean announced a plan to offer 100 million shares in a public offering, aiming to use the proceeds primarily to repay or redeem debt, including a portion of the $655 million in 8.00% Senior Notes due February 2027. In conjunction with these developments, Transocean International Limited, a wholly owned subsidiary, has commenced a cash tender offer to purchase up to $50 million of its outstanding notes. S&P Global Ratings has revised its outlook on Transocean to stable from negative, citing improved liquidity following these recent equity issuances and the proposed debt offering.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.