Replies to post #3216 on Transocean Ltd. (RIG)

[Klein_Leon]

After hours 2.22....ouch! Not a good purchase If you bought today.

[eastunder]

It was strategic alternative news which showed up on Yahoo after hours. Here's a similar spot that appeared this morning

03:08 AM EDT, 08/06/2020 (MT Newswires) -- Transocean Ltd. (RIG) has retained Lazard's (LAZ) Lazard Freres & Co. as financial adviser for help in evaluating strategic alternatives to manage its capital structure, according to a Wednesday press release.

The Swiss rig contractor has executed a private bond exchange agreement, has commenced certain internal reorganization transactions, and is evaluating potential liability management transactions to manage its liquidity and debt maturities.

Under the private exchange agreement, the company agreed to exchange $356 million of its 0.5% exchangeable bonds due 2023 for $213 million of new 2.5% senior guaranteed exchangeable bonds due 2027, to be issued by unit Transocean Inc. The 2027 bonds will have an initial exchange rate of 162.1626 common shares, par value $0.10 Swiss francs per share, per 1,000 original principal amount, subject to adjustment. The implied initial exchange price is $6.17 per share.

The series of internal reorganization transactions involve the transfer of certain assets and liabilities of certain units, including the transfer of the harsh environment floaters Transocean Endurance and Transocean Equinox and the indebtedness secured to a newly created unit.

The company has not made any decision yet on additional future liability management transactions.