Transocean intends to raise approximately $8.5 billion through concurrent public offerings of approximately $6 billion of convertible senior notes due 2037 ("Convertible Notes"), issuable in three series (Series A, B and C), and $2.5 billion of senior notes due 2013, 2018, and 2038 (together, the "Senior Notes"). In addition, Transocean may issue up to an additional $600 million of Convertible Notes upon exercise of an option to be granted to the underwriters.
Goldman, Sachs & Co. and Lehman Brothers Inc. are joint bookrunning managers for the Convertible Notes offering, Citi is a joint bookrunning manager for the offering of Series A and C Convertible Notes and Credit Suisse is a joint bookrunning manager for the offering of Series B Convertible Notes. Goldman, Sachs & Co. and Lehman Brothers Inc. are joint bookrunning managers for the Senior Notes offering, Citi is a joint bookrunning manager for the offering of 2013 Senior Notes and JPMorgan is a joint bookrunning manager for the offering of 2018 and 2038 Senior Notes.
Transocean intends to use the proceeds from the proposed offerings, together with $1.5 billion of borrowings under its new $1.5 billion 364-day revolving credit facility, to repay a portion of the outstanding borrowings under Transocean's $15.0 billion bridge loan facility that were incurred to fund cash payments to shareholders in connection with Transocean's recently completed reclassification of its ordinary shares and merger with GlobalSantaFe Corporation.
The notes will be issued under a shelf registration statement filed by Transocean with the Securities and Exchange Commission today, which became automatically effective.