Transocean Closes TODCO Secondary Stock Offering

Transocean Inc. (NYSE:RIG) announced the closing of its secondary stock offering of 17,940,000 shares of Class A common stock of TODCO (NYSE:THE), a publicly traded company in which Transocean owns a majority voting interest. The offering price was $15.75 per share. The closing included 2,340,000 shares relating to the underwriters' over-allotment option, which was exercised in full. Transocean received approximately $269.9 million of proceeds from the offering, net of underwriting fees and estimated expenses. Transocean intends to use the proceeds for the reduction of corporate debt and general corporate purposes.

The representatives of the underwriters for the offering are Morgan Stanley and Citigroup, which are acting as joint book-running managers, and Goldman Sachs and UBS Investment Bank, each of which are acting as co-managers.

After the closing of the offering, Transocean owns approximately 47% of TODCO common stock. Its ownership in TODCO is comprised entirely of Class B common stock, giving Transocean approximately 82% of the combined voting power of the outstanding common stock.

A copy of a written prospectus related to this offering may be obtained from Morgan Stanley, Prospectus Department, 1585 Broadway, New York, NY 10036, and from Citigroup Global Markets Inc., Brooklyn Army Terminal, 140 58th Street, 8th Floor, Brooklyn, NY 11220.

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