Baker Botts Represents Transocean in Senior Secured Notes Offering
Deal Description: On January 9, 2023, Transocean Ltd. (NYSE: RIG) announced that Transocean Titan Financing Limited ("Transocean Titan"), a wholly-owned indirect subsidiary of Transocean Ltd., priced an offering of U.S. $525 million in aggregate principal amount of senior secured notes due 2028 (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 and initially will operate the Deepwater Titan, and will be secured by a lien on the Deepwater Titan and certain other assets related to the rig.
The Notes will bear interest at the rate of 8.375% per annum and will be callable after February 1, 2025. The offering is expected to close on or about January 17, 2023, subject to customary closing conditions. Transocean Titan expects to receive aggregate net proceeds of approximately $515 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, acquisition, improvement or alteration of the Deepwater Titan and to fund the initial debt service reserve.
For more information, please see Transocean's press release.
Client: Transocean
In-House Counsel to Transocean: Daniel Ro-Trock
Value: $525 million
Baker Botts Lawyers/Office Involved:
Corporate: Jim Marshall (Partner, Houston), Garrett Hughey (Senior Associate, Houston), Michael Mazidi (Associate, Houston) and Chelsea Johnson (Associate, Houston)
Finance: Luke Weedon (Partner, Dallas), Alex Kamel (Senior Associate, Houston) and Regan Vicknair (Associate, Houston)
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