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Bond Market News
Transocean’s Bonds Rally on Amendments to RCF, Easing Financial Flexibility
June 4, 2025
Transocean’s dollar bonds rallied by 1-1.5 points across the curve on Tuesday. The American drilling company is said to have made amendments with regard to a revolving credit facility (RCF) as per Bloomberg Intelligence. The RCF is said to ease to $510mn in June from $600mn in 2024, with the minimum liquidity covenant cut to $200mn from $500mn. Besides, it is believed to have received an extension of the expiration date of the RCF, with financial covenants also being adjusted. These measures are expected to enhance financial flexibility and free-up additional cash. Also, the amendment allows Transocean to make restricted payments, subject to certain financial constraints, opening the door to dividends or buybacks, the report said. Separately, Transocean is also undertaking a disposal of select oil rigs, expecting a non-cash charge of $1.1-1.2bn to its Q2 results due to asset impairment.
Transocean’s 7.5% 2031s are up by 3 points this week, currently trading at 82.1, yielding 11.8%.
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