Transocean Stock Drops After Announcing Upsized Share Offering At A Discount
Synopsis
Transocean increased its planned share offering from 100 million to 125 million shares at $3.05 per share.
Shares of Transocean (RIG) tumbled in pre-market on Thursday after the company announced the pricing of an upsized share offering at a steep discount.
Transocean plans to sell 125 million shares at $3.05 each, 16% lower than Wednesday’s close of $3.64, raising roughly $381 million before fees. The company increased the offering from 100 million shares, as initially proposed on Wednesday, and granted underwriters a 30-day option to purchase up to an additional 18.75 million shares.
The company stated that the proceeds from the sale will be used to pare debt, including a portion of $655 million in 8% senior notes due in 2027. The offering is expected to close on Friday.
Transocean’s stock was down more than 15% at the time of writing.
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