Transocean raising $500 million to partially fund acquisition of its second 8th-gen drillship

Transocean raising $500 million to partially fund acquisition of its second 8th-gen drillship

Offshore drilling contractor Transocean has kicked off a private offering of $500 million of secured notes due in 2028 to cover in part its recent acquisition of the world’s second, eighth-generation drillship, among other things.

Deepwater Titan drillship; Source: Transocean (video)

Transocean disclosed on Monday that its wholly-owned indirect subsidiary, Transocean Titan Financing Limited, had started a private offering of $500 million in aggregate principal amount of senior secured notes due in 2028 to eligible purchasers.

These notes will be guaranteed by Transocean Ltd., Transocean Inc., and a wholly-owned indirect subsidiary that owns and will initially operate the Deepwater Titan eighth-generation drillship. According to the offshore drilling giant, the notes will be secured by a lien on this drillship and certain other assets related to the rig.

While the timing of pricing and terms of the notes are subject to market conditions and other factors, Transocean highlights that the net proceeds from these notes will be used to partially finance the construction, acquisition, improvement, or alteration of the Deepwater Titan drillship and to fund the initial debt service reserve.

Back on 10 December 2022, Transocean celebrated its newest eighth-generation drillship, Deepwater Titan, at the rig’s official naming ceremony in Singapore. At the time, the company said that this drillship is “the most technically capable drilling rig in the world, equipped with two 20,000-psi BOPs, 3-million-pound hook load, and five 10,000-psi mud pumps. She’s a beauty, and we can’t wait to see her in action soon!”

Watch video to learn more about Deepwater Titan and the transformational impact Transocean believes it will have on offshore drilling industry

At the end of December 2022, Sembcorp Marine completed the delivery of the Deepwater Titan drillship to Transocean’s subsidiary, Triton Titan. This rig is capable of drilling up to 40,000 feet and operating in water depths of up to 12,000 feet.

Following the delivery, the Deepwater Titan drillship is scheduled for deployment on a five-year contract in the U.S. Gulf of Mexico.

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