Transocean Sells Senior Debt (RIG)

After raising more than $1 billion in a new share offering yesterday, Transocean Ltd. (NYSE: RIG) has now priced a senior debt offering worth a total of $2.5 billion for its wholly-owned subsidiary Transocean Inc. The offering includes three different notes:

… $1.0 billion of 5.050% Senior Notes due 2016, issued at a price of 99.906% of the principal amount, $1.2 billion of 6.375% Senior Notes due 2021, issued at a price of 99.946% of the principal amount, and $300 million of 7.350% Senior Notes due 2041, issued at a price of 99.996% of the principal amount (together, the “Senior Notes”). Transocean Ltd. will fully and unconditionally guarantee the Senior Notes. The offering is expected to close on December 5, 2011, subject to the satisfaction of customary closing conditions.

We noted in our story yesterday that Transocean will use the proceeds from the debt offering to repurchase senior convertible notes and to refinance its commercial paper debt. If there’s anything left, the company will use the funds for “general corporate purposes in its operations, including but not limited to capital expenditures, acquisitions or repayment or refinancing of debt.”