Transocean Ltd. Agrees to Acquire Transocean Partners LLC
(Thomson Reuters ONE) -
* Transocean Partners common unitholders to receive 1.1427 shares of
Transocean per Transocean Partners unit in an all equity transaction
Zug, Switzerland / London - August 1, 2016 - Transocean Ltd. (NYSE: RIG) and
Transocean Partners LLC (NYSE: RIGP) today announced that Transocean has agreed
to acquire all of the outstanding common units of Transocean Partners not
already owned by Transocean in a share-for-unit merger transaction. In the
merger, Transocean Partners common unitholders will receive 1.1427 Transocean
shares for each Transocean Partners common unit. The Transocean Partners unit
price implied by the exchange ratio represents a 15% premium to Transocean
Partners' closing price on July 29, 2016. Transocean expects to issue
approximately 22.7 million shares in the merger. Completion of the transaction
is conditioned upon approval by Transocean Partners' common unitholders and is
anticipated to close in the fourth quarter of 2016.
Following completion of the transaction, Transocean Partners will be 100% owned
by Transocean and therefore Transocean will have indirectly acquired the 51%
ownership interests in the Discoverer Inspiration, the Discoverer Clear Leader
and the Development Driller III that are currently owned by Transocean Partners.
Additionally, Transocean Partners' common units will cease to be publicly traded
on the NYSE.
"We are excited about this merger, as it provides significant and immediate
benefits to Transocean in the form of simplified administration and governance,
tangible cost savings and improved liquidity," said Jeremy Thigpen, President
and Chief Executive Officer of Transocean. "The contemplated all-equity
transaction is entirely consistent with Transocean's current liquidity
objectives."
"Transocean Partners common unitholders will benefit from a premium to the
current unit price and receive shares in an entity with significant financial
flexibility, a demonstrated access to capital and meaningfully improved market
liquidity of its shares," said Kathleen McAllister, Chief Executive Officer and
Chief Financial Officer of Transocean Partners. "Additionally, we expect that
common unitholders will also benefit from Transocean's significantly larger and
more diverse fleet and its industry-leading contract backlog."
Approvals and Timeline to Completion
The transaction is subject to the approval of the holders of Transocean
Partners' common units pursuant to its limited liability company agreement. As
Transocean has already committed to voting its approximately 21.3 million common
units in favor of the merger, a vote in favor of the merger by approximately
9.9 million (or approximately 50.1%) of the approximately 19.7 million common
units not held by Transocean will be required to approve the merger. Subject to
customary approvals and conditions, the transaction is expected to close in the
fourth quarter of 2016. The transaction is expected to generally be non-taxable
to Transocean Partners common unitholders.
The transaction was negotiated on behalf of Transocean Partners by the Conflicts
Committee of its Board of Directors, which is comprised of the members of its
Board of Directors who are independent and unaffiliated with Transocean.
Transocean Partners' minimum quarterly distribution of $0.3625 per unit for the
third quarter of 2016 is expected to be paid in the fourth quarter of 2016.
Advisors
Barclays Capital Inc. acted as financial advisor to the Transocean Board of
Directors. Evercore acted as financial advisor to the Conflicts Committee of the
Board of Directors of Transocean Partners. Baker Botts L.L.P. served as legal
counsel to Transocean, and Richards, Layton & Finger, P.A. acted as legal
counsel to the Conflicts Committee of the Board of Directors of Transocean
Partners.
Presentation Information
Transocean has posted on its website an investor presentation that includes an
overview of the transaction and transaction highlights. The presentation is
posted at http://www.deepwater.com/investor-relations; or may be found by
navigating to: www.deepwater.com, selecting "Investor Relations" then "News" and
"Presentations."
Transocean Partners has posted on its website an investor presentation that
includes an overview of the transaction and transaction highlights. The
presentation is posted at http://www.transoceanpartners.com/investor-relations;
or may be found by navigating to: www.transoceanpartners.com, selecting
"Investor Relations" then "News" and "Presentations."
About Transocean Ltd.
Transocean is a leading international provider of offshore contract drilling
services for oil and gas wells. The company specializes in technically demanding
sectors of the global offshore drilling business with a particular focus on
deepwater and harsh environment drilling services, and believes that it operates
one of the most versatile offshore drilling fleets in the world.
Transocean owns or has partial ownership interests in, and operates a fleet of,
60 mobile offshore drilling units consisting of 29 ultra-deepwater floaters,
seven harsh-environment floaters, four deepwater floaters, 10 midwater floaters,
and 10 high-specification jackups. In addition, the company has five ultra-
deepwater drillships and five high-specification jackups under construction or
under contract to be constructed.
For more information about Transocean, please visit: www.deepwater.com.
About Transocean Partners LLC
Transocean Partners LLC is a limited liability company formed by Transocean Ltd.
to own, operate and acquire modern, technologically advanced offshore drilling
rigs. Transocean Partners' assets consist of 51 percent interests in subsidiary
companies that own and operate three ultra-deepwater drilling rigs.
For more information about Transocean Partners, please visit:
www.transoceanpartners.com.
Forward-Looking Statements
This press release includes "forward-looking statements" within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. The statements regarding the
proposed transaction, including its effects, benefits and costs savings,
opinions, forecasts, projections, expected timetable for completion, expected
distribution and any other statements regarding Transocean Ltd.'s ("Transocean")
and Transocean Partners LLC's ("Transocean Partners") future expectations,
beliefs, plans, objectives, financial conditions, assumptions or future events
or performance that are not statements of historical fact, are forward-looking
statements within the meaning of the federal securities laws. We can give no
assurance that such expectations will prove to have been correct. These
statements are subject to risks, uncertainties and assumptions including, among
other things, satisfaction of the closing conditions to the merger, the risk
that the contemplated merger does not occur, negative effects from the pendency
of the merger, the ability to realize expected cost savings and benefits,
failure to obtain the required vote of Transocean Partners unitholders, the
timing to consummate the proposed transaction, the adequacy of and access to
sources of liquidity, Transocean's and Transocean Partners' inability to obtain
drilling contracts for rigs that do not have contracts, Transocean's inability
to renew drilling contracts at comparable dayrates, operational performance, the
impact of regulatory changes, the cancellation of drilling contracts currently
included in each company's reported contract backlog, and other risk factors
that are discussed in Transocean's and Transocean Partners' most recent Annual
Report on Form 10-Ks as well as its other filings with the SEC available at the
SEC's Internet site (www.sec.gov). Actual results may differ materially from
those expected, estimated or projected. Forward-looking statements speak only as
of the date they are made, and we undertake no obligation to publicly update or
revise any of them in light of new information, future events or otherwise.
Additional Information
This press release does not constitute an offer to buy or sell or the
solicitation of an offer to buy or sell any securities or a solicitation of any
vote or approval. INVESTORS ARE URGED TO READ THE PROXY STATEMENT/PROSPECTUS,
THE REGISTRATION STATEMENT AND OTHER DOCUMENTS THAT MAY BE FILED WITH THE SEC
REGARDING THE TRANSACTION CAREFULLY AND IN THEIR ENTIRETY IF AND WHEN THEY
BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. These
documents (when they become available) will contain important information about
the proposed transaction that should be read carefully before any decision is
made with respect to the proposed transaction. Investors will be able to obtain
free copies of these documents (if and when available) and other documents filed
with the SEC by Transocean and Transocean Partners through the website
maintained by the SEC at www.sec.gov. Copies of the documents filed with the SEC
by Transocean will be available free of charge on Transocean's internet website
at www.deepwater.com. Copies of the documents filed with the SEC by Transocean
Partners will be available free of charge on Transocean Partners' internet
website at www.transoceanpartners.com. You may also read and copy any reports,
statements and other information filed by Transocean and Transocean Partners
with the SEC at the SEC public reference room at 100 F Street N.E., Room 1580,
Washington, D.C. 20549. Please call the SEC at (800) 732-0330 or visit the SEC's
website for further information on its public reference room.
Participants in Solicitation
Transocean, Transocean Partners, their respective directors and certain of its
executive officers may be considered, under SEC rules, participants in the
solicitation of proxies in connection with the proposed transaction. Information
about the directors and executive officers of Transocean are set forth in its
Annual Report on Form 10-K for the year ended December 31, 2015, which was filed
with the SEC on February 25, 2016, and its proxy statement for its 2016 annual
general meeting of shareholders, which was filed with the SEC on March
18, 2016. Information about the directors and executive officers of Transocean
Partners is set forth in its Annual Report on Form 10-K for the year ended
December 31, 2015, which was filed with the SEC on February 25, 2016, and its
proxy statement for its 2016 annual meeting of unitholders, which was filed with
the SEC on March 17, 2016. These documents can be obtained free of charge from
the sources indicated above. Additional information regarding the participants
in the proxy solicitation and a description of their direct and indirect
interests in the transaction, by security holdings or otherwise, will be
contained in the proxy statement/prospectus and other relevant materials to be
filed with the SEC when they become available.
Analyst Contacts:
Bradley Alexander
+1 713-232-7515
Diane Vento
+1 713-232-8015
Media Contact:
Pam Easton
+1 713-232-7647
This announcement is distributed by GlobeNewswire on behalf of
GlobeNewswire clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Transocean Partners LLC via GlobeNewswire
[HUG#2032231]
Datum: 01.08.2016 - 12:35 Uhr
Sprache: Deutsch
News-ID 486545
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contact information:
Town:
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Kategorie:
Business News
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