Transocean amends credit facility, retires $165M in notes

Transocean Ltd. has amended its credit agreement with Citibank, N.A. and select lenders, as disclosed in a press release. The revised agreement is contingent upon customary conditions and the completion of Transocean's acquisition of Valaris Limited. The amendment extends the maturity date of the existing revolving credit facility from June 2028 to October 2031, and increases total revolving commitments to $750 million from $510 million.

The credit facility's covenants and other terms have also been modified. The revolving credit facility was oversubscribed during the syndication process and remains guaranteed by Transocean and its subsidiaries, secured by drilling rigs and related collateral.

Additionally, Transocean retired its $165 million of 8.00% Senior Secured Notes due in 2028 on October 1. The company settled the outstanding principal amount, along with a call premium and accrued interest, using its cash reserves and funds from the related debt service reserve account. This retirement is expected to result in approximately $22 million in interest expense savings to maturity.

Transocean operates a fleet of 27 mobile offshore drilling units, comprising 20 ultra-deepwater floaters and seven harsh environment floaters, providing offshore contract drilling services for oil and gas wells.