Transocean agrees to expand credit facility ahead of Valaris acquisition
Transocean Ltd. has entered into an amended and restated credit agreement that would increase its revolving credit facility to US$750 million from US$510 million, subject to the completion of its previously announced acquisition of Valaris Limited and other customary conditions.
The agreement was signed on 15 October 2026 through Transocean International Limited, a wholly owned subsidiary of the Swiss-based offshore drilling company. Citibank is acting as administrative agent and collateral agent, alongside participating lenders.
Once effective, the revised agreement will also extend the facility’s scheduled maturity from June 2028 to October 2031 and modify certain financial covenants and contractual terms. According to Transocean, the facility attracted commitments exceeding the amount sought during syndication.
Credit facility linked to Valaris acquisition
The revised financing arrangements are conditional on the closing of Transocean’s planned acquisition of Valaris Limited, which was announced earlier in 2026.
Until the required conditions are satisfied, the existing credit agreement remains in effect. Under the terms disclosed in the company’s regulatory filing, the lenders’ commitments under the amended agreement will automatically terminate if the conditions are not satisfied or waived by 9 May 2027.
The revolving credit facility will continue to be guaranteed by Transocean and certain subsidiaries, with security provided by selected drilling rigs and related collateral.
The agreement represents a planned increase of US$240 million in revolving commitments, although the additional capacity will not become effective until the relevant conditions have been met.
Transocean completes early debt repayment
Separately, Transocean confirmed that it had fully retired its 8.00% Senior Secured Notes due 2028, known as the Deepwater Aquila Notes, on 1 October 2026.
The company repaid the outstanding principal of US$165 million, together with a call premium and accrued unpaid interest, using available cash and funds from the associated debt service reserve account.
According to Transocean, the early repayment is expected to generate approximately US$22 million in interest expense savings through the notes’ original maturity.
The company said the debt retirement forms part of its efforts to reduce outstanding borrowings, lower interest costs and simplify its balance sheet.
The amended credit agreement and completed note redemption were disclosed in a Form 8-K filed with the US Securities and Exchange Commission on 15 October 2026.
