Transocean, world’s largest offshore drilling contractor, has closed a private offering $410 million in senior secured notes with an annual rate of 5.52% and maturing in 2022.
The Transaction was closed by Transocean Conqueror Limited, a Transocean subsidiary, and the owner of the Deepwater Conqueror drillship delivered in 2016. The Notes, guaranteed by the indirect subsidiary that owns the Deepwater Conqueror, are secured by a lien on the Deepwater Conqueror and certain other assets related to the rig, Transocean said. The company pointed out that neither Transocean Ltd. nor Transocean Inc. guaranteed the obligations of the Issuer under the Notes. The net proceeds of approximately $403 million from the Notes will be used primarily for the purpose of partially financing the construction of the ultra-deepwater drillship Deepwater Conqueror. The drillship on December 31, 2016, started operations on its 5-year contract with Chevron in the U.S. Gulf of Mexico at a dayrate of $589,000.
Transocean last week posted a net income of $95 million for the first quarter of the year, which is a drop when compared to $242 million in the corresponding quarter in 2016.
During the conference call, the company reps said that the previously announced divestment of its entire jack-up fleet to Borr Drilling has yet to be completed. Transocean is looking to wrap up the sale of its 10 jack-ups, and five jack-ups under construction for $1.35 billion.
This will transform the company to a fully deepwater rig operator. This is where Transocean is looking to expand.
CEO Jeremy Thigpen said last week that Transocean is monitoring the distressed payers and a number of stranded hi-spec rigs in the shipyards, hoping to potentially grow and high-grade its deepwater drilling rig fleet.
Offshore Energy Today Staff