arild lilleboe/iStock via Getty Images
- Contract drilling services company Transocean (NYSE:RIG) shares dropped 2% Wednesday morning after its subsidiary priced an offering of $1.175B of senior secured notes due 2030.
- The notes will be guaranteed by the parent company and certain of the unit's subsidiaries that guarantee the existing 7.75% senior secured notes due 2024 (Thalassa Notes), 5.875% senior secured notes due 2024 (Guardian Notes), 6.25% senior secured notes due 2024 (Proteus Notes) and 6.125% senior secured notes due 2025 (Pontus Notes). They will bear interest at the rate of 8.75% per annum.
- Subsidiaries that guarantee the notes will be subject to a Secured Limited Guarantee Cap on the notes equal to $247M, $320M, $256M and $352M, respectively.
- All of the net proceeds from the offering will be used to fund the redemption of all of the outstanding existing secured notes.
- The offering is expected to close on or about January 31, 2023.