Transocean Expands Revolver to $750M, Retires $165M Aquila Notes
RIG sits 76% above its 52-week low of $3.144.
Summary
Transocean's subsidiary signed an amended and restated revolver that lifts commitments to $750M from $510M and pushes maturity out to October 2031 from June 2028, with the facility oversubscribed during syndication. The agreement only takes effect once the $5.8B Valaris acquisition closes, which is now cleared on all regulatory fronts after CADE's approval on October 14 and the DOJ's clearance on September 30. Separately, the company retired the 8.00% Aquila notes due 2028 in full on October 1, paying off $165M of principal plus a call premium and accrued interest from cash on hand, saving roughly $22M in interest expense to maturity. The moves extend liquidity and cut interest costs ahead of the merger, consistent with the deleveraging that drove Q2's $170M profit. The November 24 shareholder vote on the Valaris deal is the next hard date.
At the time of this announcement, RIG was trading at $5.52 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $6.2B. The 52-week trading range was $3.14 to $7.66. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: GlobeNewswire.