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STEINHAUSEN, Switzerland - Transocean Ltd. (NYSE:RIG), currently valued at $3.32 billion and trading at a notably low Price/Book multiple of 0.36, announced Tuesday that its wholly owned subsidiary, Transocean International Limited, has commenced a cash tender offer to purchase up to $50 million of its outstanding notes.
The tender offer targets two series of notes in order of priority: the 7.35% Senior Notes due December 2041 (currently bearing 9.35% interest) and the 7.00% Notes due June 2028, which were issued by Global Marine Inc., another Transocean subsidiary. According to InvestingPro data, the company has demonstrated strong revenue growth of 23.26% over the last twelve months, though its stock has experienced a 12.15% decline in the past week.
The company is offering $950 per $1,000 principal amount for the 2041 notes and $980 per $1,000 principal amount for the 2028 notes, including a $50 early tender premium for notes tendered by the October 14 early tender deadline.
The tender offer will expire on October 29, 2025, unless extended or terminated earlier. Transocean expects the early settlement date to be around October 16, with the final settlement date on October 31, assuming the maximum tender amount is not fully purchased during early settlement.
The offer is subject to several conditions, including the completion of Transocean’s separately announced senior debt securities offering. If the maximum tender amount is reached during the early settlement period, notes tendered after the early deadline will not be accepted for purchase.
Wells Fargo Securities is serving as dealer manager for the tender offer, which is being made pursuant to terms outlined in the company’s Offer to Purchase dated September 30, 2025.
Transocean specializes in offshore drilling services with a fleet of 27 mobile offshore drilling units, including 20 ultra-deepwater floaters and seven harsh environment floaters. With a beta of 2.79, the stock shows higher volatility than the market average. InvestingPro subscribers can access detailed analysis and 8 additional key insights about Transocean’s financial health and market position through the comprehensive Pro Research Report.
In other recent news, Transocean Ltd. reported a mixed financial performance for its second quarter of 2025. The company achieved a revenue of $988 million, surpassing analyst expectations of $969.61 million. However, its earnings per share (EPS) were $0, falling short of the anticipated -$0.0041. In another development, Transocean announced plans to dispose of five drilling rigs, which will result in a non-cash impairment charge of approximately $1.9 billion. Additionally, Transocean launched a $500 million private offering of Senior Priority Guaranteed Notes due 2032. The company also plans to offer 100 million shares in an underwritten public offering to primarily repay or redeem debt. Citigroup and Morgan Stanley are serving as joint book-running managers for this share offering. These recent developments highlight Transocean’s efforts to manage its financial position and asset portfolio.
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