Transocean Titan Financing to price $500 million five-year secured notes in Monday drive-by

By Paul A. Harris

Portland, Ore., Jan. 9 – Transocean Titan Financing Ltd. plans to price a $500 million offering of amortizing five-year senior secured notes (B2/B-) in a Monday drive-by, according to market sources.

Initial guidance has the notes coming to yield in the 9% area, a trader said.

There is a mandatory amortization for 75% of the principal amount of notes beginning Feb. 1, 2025.

The Rule 144A for life and Regulation S notes come with two years of call protection. They also feature a 101% poison put.

Morgan Stanley, Citigroup, DNB, Goldman Sachs, Wells Fargo and Credit Agricole are the joint bookrunners.

SR Bank and Standard Bank are the co-managers.

The guarantors are Transocean Ltd. (Parent), also known by its stock ticker, NYSE: RIG, and Triton Titan GmbH.

The financial covenants feature a collateral rig leverage ratio, a total leverage ratio and a minimum debt service reserve.

Negative covenants are substantially similar to the existing RIG secured notes packages, including limitations on liens and debt.

The Switzerland-based offshore drilling contractor plans to use the proceeds from the notes to finance the purchase of Titan drillship and to fund a debt service reserve account.

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