After deducting the initial purchasers’ discount and estimated offering costs, Transocean Poseidon expects to receive $538m aggregate net proceeds from the offering.
The company plans to use the proceeds to partially finance the construction or acquisition of the rig.
Transocean Poseidon has raised the offering in the aggregate principal amount of senior secured notes due 2027 to eligible purchasers according to Rule 144A/Regulation S.
According to Transocean, the notes will bear interest at an annual rate of 6.875% and be guaranteed by Transocean Ltd, Transocean Inc. and a wholly owned indirect subsidiary that owns the drillship.
It will be secured by a lien on the Deepwater Poseidon its certain other associated assets.
The notes will be callable after 1 February 2022.
Subject to customary closing conditions, the offering is expected to close on or near 1 February.
Korean firm DSME delivered the Deepwater Poseidon drillship to Transocean last year when it started its contract with Shell in the Gulf of Mexico for a ten-year period.
Last May, Shell made a deepwater, exploration discovery using the rig in the Norphlet geologic play in the US Gulf of Mexico with its Dover well, offshoreenergytoday.com reported.
Capable of accommodating 200 people, the rig has a transit speed of up to 12.5k and can reach a maximum drilling depth of 40,000ft.