Transocean Ltd. has entered into an amended and restated credit agreement that, upon closing of its acquisition of Valaris Limited, will increase its revolving credit facility to $750 million and extend the maturity. Separately, the company announced it has retired $165 million of its 8.00% Senior Secured Notes due 2028, a move aimed at deleveraging and reducing interest expenses.
Key Details
- Amended Credit Facility: The new agreement increases the total revolving commitment to $750 million from $510 million and extends the maturity date from June 2028 to October 2031.
- Acquisition Contingency: The effectiveness of the amended credit facility is contingent upon the closing of Transocean's previously announced acquisition of Valaris Limited. If conditions are not met by May 9, 2027, the new commitments will terminate.
- Debt Retirement: On October 1, 2026, Transocean retired the entire $165 million outstanding principal of its 8.00% Senior Secured Notes due 2028 using cash on hand.
- Interest Savings: The early retirement of the notes is expected to result in approximately $22 million in interest expense savings through maturity.