GlobalSantaFe Redemms Global Marine 7 1/8% Notes Due 2007

GlobalSantaFe announced that a subsidiary, Global Marine Inc., called its 7 1/8% Senior Notes due 2007 for redemption on June 30, 2004. The face value of the notes is $300 million, and accrued and unpaid interest through June 30, 2004 is approximately $7 million.

The redemption price will be equal to the face value plus accrued and unpaid interest on the notes and a "make-whole" premium determined by reference to a fixed spread of 20 basis points over a specified U.S. Treasury yield for a period of 30 days ending June 30, 2004. At current interest rates, the "make-whole" premium would be approximately $35 million. The actual premium paid, plus unamortized issue costs of approximately $1 million, will be recorded as a loss on retirement of the Notes. The company plans to use existing cash on hand to fund the redemption.
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