S&P rates Transocean notes BB-

S&P said it assigned its BB- issue-level rating to Transocean Inc. subsidiary Transocean Pontus Ltd.'s proposed $600 million secured notes due 2025.

The recovery rating is 1, indicating an expectation of very high (90% to 100%, rounded estimate: 95%) recovery to creditors in the event of a payment default.

The notes are secured by the seventh generation ultra-deepwater drillship Deepwater Pontus, which is under long-term contract with a wholly owned subsidiary of Royal Dutch Shell plc through October 2027 at a favorable day-rate relative to current market conditions.

The notes are fully and unconditionally guaranteed by parent companies Transocean Inc. and Transocean Ltd., and collateral rig-owning subsidiaries.

S&P said it expects proceeds to be used to refinance debt incurred in the construction of the Deepwater Pontus.

The corporate credit rating on Transocean remains B with a negative outlook.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.