Transocean begins tender for $1.5 billion of five note series

By Susanna Moon

Chicago, June 13 – Transocean Ltd. said wholly owned subsidiary Transocean Inc. began cash tender offers to purchase up to $1.5 billion principal amount of five series of its notes.

The total purchase price for each $1,000 principal amount will be as follows, with the notes listed in order of priority acceptance levels:

• $423,485,000 of 2½% senior notes due 2017 with a current coupon of 4¼% with a total purchase price of $1,009.19;

• $210,098,000 of 7 3/8% senior notes due 2018 with a current coupon of 7 3/8% with a total purchase price of $1,046.50;

• $718,788,000 of 6% senior notes due 2018 with a current coupon of 6%, a total purchase price of $1,031.35 and a tender cap of $400 million;

• $501,804,000 of 6½% senior notes due 2020 with a current coupon of 6½%, total purchase price of $1,057.50 and tender cap of $225 million; and

• $545,424,000 of 6 3/8% senior notes due 2021 with a current coupon of 8 1/8% and expected to rise to 8 3/8% on June 15, total purchase price of $1.075.00 and tender cap of $225 million.

The total purchase price includes an early tender premium of $20.00 for each $1,000 principal amount of notes tendered by 5 p.m. ET on June 26, the early deadline.

Holders will also receive accrued interest to but excluding the settlement date.

The tender offers will remain open until 11:59 p.m. ET on July 11.

Tendered notes may be withdrawn before 5 p.m. ET on June 26.

Transocean reserves the right to increase the maximum tender amount or the tender caps without extending withdrawal rights, according to a company announcement.

Wells Fargo Securities, LLC (866 309-6316 or 704 410-4760) and Credit Agricole Securities (USA) Inc. (866 807-6030 or 212 261-7802) are the dealer managers. D.F. King & Co., Inc. (888 625-2588, 212 269-5550 or transocean@dfking.com) is the depositary and the information agent.

Transocean is an offshore oil and drilling contractor based in Zug, Switzerland.

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