Transocean announced the proposed public offering of senior notes of its wholly-owned subsidiary, Transocean Inc. Transocean Ltd. expects to fully and unconditionally guarantee the senior notes.
Transocean Inc. intends to use the net proceeds from this offering (1) to fund the expected repurchase of its 1.625% Series A Convertible Senior Notes due December 2037 that holders of the Series A Convertible Senior Notes may require it to repurchase in December 2010 and (2) to fund the intended repurchase of a portion of its 1.50% Series B Convertible Senior Notes due 2037 and its 1.50% Series C Convertible Senior Notes due December 2037 through repurchases in the open market, in privately negotiated transactions or in tender offers. Transocean Inc. plans to use the remainder, if any, of such net proceeds for general corporate purposes in its operations, including but not limited to capital expenditures, acquisitions or repayment or refinancing of debt. Pending application of the net proceeds from the sale of the senior notes, Transocean intends to invest such proceeds in short-term investments.
The senior notes will be issued under a shelf registration statement filed by Transocean Ltd. and Transocean Inc. with the Securities and Exchange Commission on September 16, which became automatically effective.
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