Each holder of the debentures can require Transocean to repurchase all or any part of such holder's debentures at a repurchase price of $1,000 in cash plus accrued and unpaid interest, up to and including the date of repurchase, per $1,000 principal amount. The repurchase would occur on May 15.
Under the terms of the debentures, Transocean has the option to settle the debentures with cash, Transocean ordinary shares, or a combination of cash and shares. The company elected to repurchase the debentures solely with cash. If all outstanding debentures are surrendered for repurchase, the aggregate cash repurchase price will be approximately $400 million. Transocean intends to fund the repurchase price by using available cash.
Holders may exercise their option to require Transocean to repurchase their debentures by delivering a repurchase notice to The Bank of New York, the paying agent, before the expiration of the option at 5 p.m. Eastern time, on May 15.
The debentures are convertible into 13.8627 Transocean ordinary shares per $1,000 principal amount so long as specified conditions are met and subject to adjustments under certain circumstances.
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