Transocean lifts revolving credit line to $750m

Transocean Ltd. said in an Oct. 15 press release its Transocean International unit signed a credit agreement that would raise revolving commitments to $750 million, subject to closing its Valaris Limited acquisition.

The facility would replace a $510 million commitment and push maturity to October 2031 from June 2028, giving the offshore driller longer-dated liquidity as it pursues the Valaris transaction.

Citibank, N.A. is administrative agent and collateral agent under the amended and restated agreement, Transocean said. A revolving credit facility is a committed borrowing line that companies can draw and repay, typically to support liquidity and working-capital needs.

Transocean said the syndication was oversubscribed, which it described as strong lender support. The facility will remain guaranteed by Transocean Ltd. and certain subsidiaries, and secured by specified drilling rigs and related collateral.

The company separately said it retired in full the 8.00% Senior Secured Notes due 2028 known as the Aquila Notes on Oct. 1. The $165 million principal amount, plus a call premium and accrued but unpaid interest, was paid with cash on hand and funds from the associated debt-service reserve account.

Transocean said the note redemption will save about $22 million of interest expense through maturity. The company framed the move as part of its effort to reduce debt, lower interest costs and simplify its balance sheet.

The agreement is not yet effective. Transocean said effectiveness depends on customary conditions and completion of its previously announced acquisition of Valaris Limited.