Transocean LTD. - RIG STOCK NEWS

Transocean Ltd. (NYSE: RIG) released a quarterly Fleet Status Report on October 14, 2020, indicating a total backlog of approximately $8.2 billion. The report highlights that the customer exercised a 180-day option for the Dhirubhai Deepwater KG1 in India. Transocean specializes in offshore drilling services, operating a versatile fleet that includes 38 mobile offshore drilling units and two new ultra-deepwater drillships under construction. Forward-looking statements indicate potential risks affecting contract durations and prices.

Transocean Ltd. (NYSE: RIG) announced the commencement of cash tender offers for its outstanding debt securities. The offers include the purchase of all 6.500% Senior Notes due 2020 and up to $200 million of various other notes due 2021-2025. The offer for the 2020 Notes is not subject to the maximum amount limit. Holders must tender their notes by 5:00 p.m. on October 26, 2020, for early consideration. The offers will expire on November 9, 2020, unless extended. The maximum purchase price is set at $200 million, allowing the company flexibility to adjust as necessary.

Transocean Ltd. (RIG) has successfully completed its Exchange Offers, resulting in the tender of approximately $1.514 billion of existing notes for new 11.50% Senior Guaranteed Notes due 2027. The Exchange Offers closed on September 9, 2020, with about $688 million of new notes expected to be issued. The offers were directed towards eligible holders outside the U.S. or qualified institutional buyers. Notably, several interest rates for existing notes have been adjusted upward. The settlement date for the exchange is anticipated on September 11, 2020.

Transocean Ltd. (NYSE: RIG) announced it has received over $1.5 billion in validly tendered Exchange Notes, as part of its Exchange Offers to exchange certain existing notes for up to $750 million in new Senior Guaranteed Notes. Following a court ruling, Transocean will proceed with the Exchange Offers, which have been extended until September 9, 2020. Holders of existing notes can continue to participate, and the company maintains that the claims against it are unfounded. Details of the offers and the related terms can be found in the Exchange Offer Memorandum.

Transocean Ltd. (NYSE: RIG) has amended its exchange offers to swap existing notes for up to $750 million of new 2027 senior guaranteed notes. As of August 21, 2020, $1.13 billion in existing notes were tendered. The revised consideration for the exchange includes increases in pay for specific notes, such as $825 for 6.375% notes due 2021. The deadline for tendering existing notes is now September 4, 2020. Importantly, new covenants have been added to the new notes to limit certain financial actions and ensure compliance with regulations.

Transocean Ltd. (NYSE: RIG) has initiated exchange offers to swap existing notes for up to $750 million of new senior guaranteed notes. The new notes will be backed by Transocean Ltd. and its indirect subsidiaries. The offers include soliciting consents from eligible holders to amend existing indentures. The exchange offers will expire at 11:59 p.m. on September 4, 2020. Eligible holders must tender their existing notes by 5:00 p.m. on August 21, 2020, to receive total consideration, which includes a premium for early exchange.

Transocean Ltd. (NYSE: RIG) announced an additional private exchange agreement for its 0.5% Existing Exchangeable Bonds due 2023. Transocean Inc. will exchange $40.9 million of these bonds for $24.6 million in new 2.5% Senior Guaranteed Exchangeable Bonds due 2027. Together with prior exchanges, this totals $396.6 million of Existing Bonds exchanged for $237.9 million of new bonds. The new bonds will carry an initial exchange rate of 162.1626 shares per $1,000 and an exchange price of approximately $6.17 per share. The transaction is subject to customary closing conditions.

Transocean Ltd. (NYSE: RIG) announced a private exchange agreement for its 0.5% Exchangeable Bonds due 2023, exchanging approximately $356 million for new 2.5% Senior Guaranteed Exchangeable Bonds due 2027. The new bonds will have an exchange rate of 162.1626 shares per $1,000, equating to an initial price of about $6.17 per share. Additionally, Transocean is undergoing internal reorganization and exploring further liability management strategies. Financial advisor Lazard Frères & Co. LLC has been retained to assist with strategic alternatives.

Transocean reported a net loss of $497 million, or $0.81 per diluted share, for Q2 2020, affected by $496 million in net unfavorable items. Total contract drilling revenues rose to $930 million, up from $759 million in Q1 2020, with adjusted revenues at $983 million.

Revenue efficiency improved to 97.2% from 94.4%. Operating expenses decreased to $525 million, while adjusted EBITDA increased to $418 million. Contract backlog remained strong at $8.9 billion. CEO Jeremy Thigpen highlighted progress on a significant contract for upgrading the Deepwater Atlas drillship.