Transocean $550 Million Senior Secured Notes Offering

Baker Botts advised Transocean on the transaction

Transocean Poseidon Limited (“Transocean Poseidon”), a wholly owned indirect subsidiary of Transocean, priced an offering of U.S. $550 million in aggregate principal amount of senior secured notes due 2027 (the “Notes”) to eligible purchasers pursuant to Rule 144A/Regulation S.

The Notes will be guaranteed by Transocean Ltd., Transocean Inc. and a wholly owned indirect subsidiary that owns the Deepwater Poseidon, and will be secured by a lien on the Deepwater Poseidon and certain other assets related to the rig.

The Notes will bear interest at the rate of 6.875% per annum and will be callable after February 1, 2022. The offering is expected to close on or about February 1, 2019, subject to customary closing conditions. Transocean Poseidon expects to receive aggregate net proceeds of approximately $538 million from the offering, after deducting the initial purchasers’ discount and estimated offering costs.

The net proceeds from the Notes will be used to partially finance the construction or acquisition of the Deepwater Poseidon.

Baker Botts advised Transocean with a team including Gene Oshman (Picture, Houston), A.J. Ericksen (Partner, Houston), Laura Katherine Mann (Senior Associate, Houston), Ieuan List (Associate, Houston) and Emmie Proctor (Associate, Houston) (Capital Markets); Luke Weedon (Partner, Dallas), Jennifer Ybarra (Associate, Dallas) and Taylor Courtade (Associate, Dallas) (Finance) Derek Green (Partner, Houston), Jon Lobb (Partner, Houston) and Dominick Constantino (Associate, Houston) (Tax) and Laura Williams (Associate, Houston) (Environmental).

Vinson & Elkins advised the Initial Purchasers on the offering.

Involved fees earner: Dominick Constantino – Baker Botts; Taylor Courtade – Baker Botts; A.J. Ericksen – Baker Botts; Derek Green – Baker Botts; Ieuan List – Baker Botts; Jon Lobb – Baker Botts; Laura Katherine Mann – Baker Botts; Gene Oshman – Baker Botts; Emmie Proctor – Baker Botts; Luke Weedon – Baker Botts; Laura Williams – Baker Botts; Jennifer Ybarra – Baker Botts;

Law Firms: Baker Botts;

Clients: Transocean Ltd.;

Author: Ambrogio Visconti