New Issue: Transocean prices $750 million 8.25-year notes at par to yield 7½%

By Paul A. Harris

Portland, Ore., Oct. 4 – Transocean Inc. priced a $750 million issue of 8.25-year senior guaranteed notes (B1/B+) at par to yield 7½% in a quick-to-market Wednesday trade, according to a syndicate source.

The yield printed at the tight end of the 7½% to 7¾% yield talk.

Citigroup Global Markets Inc., Barclays and Wells Fargo Securities LLC were the joint bookrunners.

The Houston-based offshore oil and drilling contractor plans to use the proceeds to fully repay its 2½% senior notes due Oct. 15, 2017 upon maturity, to redeem all of its 6% senior notes due March 2018 and its 7 3/8% senior notes due April 2018, to fully repay its Eksportfinans loans due January 2018 and for general corporate purposes.

Issuer:	Transocean Inc.
Amount:	$750 million
Maturity:	Jan. 15, 2026
Securities:	Senior guaranteed notes
Left bookrunner:	Citigroup Global Markets Inc.
Joint bookrunners:	Barclays, Wells Fargo Securities LLC
Co-managers:	BNP Paribas, BofA Merrill Lynch, Credit Agricole CIB, Credit Suisse Securities (USA) LLC, DNB Markets, Goldman Sachs & Co., Morgan Stanley & Co and Standard Chartered Bank
Coupon:	7½%
Price:	Par
Yield:	7½%
Spread:	523 bps
First call:	Make-whole call at Treasuries plus 50 bps until Jan. 15, 2021, then callable at 105.625
Equity clawback:	40% at 107.5 until Jan. 15, 2021
Trade date:	Oct. 4
Settlement date:	Oct. 17
Ratings:	Moody’s: B1
	S&P: B+
Distribution:	Rule 144A and Regulation S for life
Price talk:	7½% to 7¾%
Marketing:	Quick to market

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