Transocean Inc. launched a $1.5bn private offering of senior unsecured notes due 2029 and 2031, and at the same time offered to buy back for cash any and all of its 11.50% 2027 and 7.25% 2025 priority guaranteed notes, with part of the proceeds funding the buybacks and a conditional redemption of any 2025 notes left, set for April 23, 2024. It also said it is in advanced talks with revolver lenders to extend commitments by three years from June 22, 2025, at a smaller total size. This continues the company's refinancing of its older, higher-cost debt; nothing was priced or completed in this filing.
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).
On Mar 1, 2024, Transocean amended its Articles of Association to reflect 19,100,582 new shares issued to a wholly owned subsidiary, mainly to meet share delivery obligations under its equity benefit plans. Share capital is now CHF 86,281,585.80, divided into 862,815,858 shares; the new shares are not sold to outside investors, but they increase the share count available for future delivery to employees (inference: potential dilution when delivered).
Transocean published its routine Feb 14, 2024 fleet status report. It reflects the previously announced Barents contract in Romania with OMV Petrom (Jan-25 to Jun-26 at $465,000). Other changes shown include Aquila's Petrobras contract at $449,000 (Jun-24 to Jun-27), Atlas moving to $455,000 from Mar-24 to Apr-25, and KG2 getting a 72-day contract preparation period in Mar-May 24 before its next Petrobras contract at $445,000 to Jul-26.
Transocean announced a minimum 540-day contract for the harsh-environment Transocean Barents with OMV Petrom in the Romanian Black Sea at $465,000 per day, expected to start in Q1 2025 and worth about $251 million in backlog (excluding mobilization and demobilization compensation). Days beyond 540, including two option periods, would be paid at $480,000. This adds work for Barents after its current East Mediterranean job ending Jan-24.
Transocean published its routine Oct 18, 2023 fleet status report. It lists Deepwater Aquila as a rig under construction for Petrobras in Brazil (Jun-24 to Jun-27 at $448,000) and shows Barents moving to a Cyprus contract with ENI (TotalEnergies farmout) in Oct-23, KG1 with Reliance in India to Dec-23 then ONGC from Feb-24, and Conqueror now with Chevron at $440,000 to Mar-25. The report counts 28 ultra-deepwater rigs.
On Oct 11, 2023, Transocean Aquila Limited, a wholly owned subsidiary, closed a $325 million offering of 8.000% senior secured notes due 2028, secured by the Deepwater Aquila and related assets and guaranteed by Transocean Ltd., Transocean Inc. and Transocean DWA Limited (Truist Bank is trustee). This is the debt financing the company said in September it was exploring for the Aquila, which it had just bought out of Liquila; the filing does not state how the proceeds will be used.
10 Oct 2023capital raising announcement● NeutralMajor
Transocean Inc. agreed (Oct 3-4, 2023) with bondholders to swap $60,000,000 of its 4.0% 2025 exchangeable bonds for 11,428,568 shares and $41,000,000 of its 4.625% 2029 exchangeable bonds for 11,917,130 shares, and to hand over a further 1,921,298 and 1,223,550 shares respectively as extra consideration. This continues the company's pattern of converting debt into shares: it cuts debt by $101 million of principal but issues more shares to existing holders, diluting them.
