Each one in plain English, with the numbers worked through for a shareholder.
29 May 2019debt financing● NeutralMajor
A Transocean subsidiary, Transocean Sentry Limited, closed a $525 million offering of 5.375% senior secured notes due 2023 on May 24, 2019. The notes are secured by liens on the Transocean Endurance and Transocean Equinox rigs and guaranteed by Transocean Ltd., Transocean Inc. and the two rig-owning companies; the filing does not state what the proceeds are for. This adds to the series of rig-backed secured bond issues since 2016 (Thalassa, Proteus, Songa Enabler/Encourage, Pontus, Poseidon).
Transocean furnished its routine Fleet Status Report dated April 17, 2019. It shows Corcovado and Mykonos on Petrobras in Brazil from Nov-19 to May-21 at $195,000 and $215,000 per day, and Development Driller III now running to Feb-20 at $192,000; the exhibit was truncated, so other changes are not visible.
Transocean Ltd. shareholders approved the routine matters put to a vote at the company's annual meeting (director elections, auditor ratification, and the executive-pay advisory vote).
Petrobras awarded the Ocean Rig Corcovado a 629-day contract and the Ocean Rig Mykonos a 550-day contract, both starting in Brazil in November 2019. Firm backlog excluding mobilization is about $123 million and $118 million, with priced options for 680 and 815 days. The filing calls both ships part of the Ocean Rig transaction 'last December', which confirms the Ocean Rig deal closed and puts the company at 48 rigs; these two ships were idle in the prior fleet report.
Transocean furnished its routine Fleet Status Report dated Feb 11, 2019. It now lists 31 ultra-deepwater rigs and names ex-Ocean Rig vessels (Apollo, Athena, Skyros, Mylos, Corcovado, Mykonos, Olympia, Poseidon), plus Ocean Rig Crete and Santorini under construction, which indicates (inference) the Ocean Rig acquisition has closed. It also shows a Chevron contract for JSPL drillship TBN 2 (Q4 2021 to Q4 2026, $455,000/day), the first contract on one of the previously uncontracted JSPL ships; the exhibit was truncated.
On Feb 1, 2019 Transocean Poseidon Limited, a wholly-owned subsidiary, closed a $550 million offering of 6.875% senior secured notes due 2027, secured on the Deepwater Poseidon and guaranteed by Transocean Ltd., Transocean Inc. and Triton Poseidon GmbH (Wells Fargo trustee). This adds another rig-secured note after the 2018 Guardian and Pontus issues; the filing does not state what the proceeds will be used for.
