Transocean Stock Drops After Announcing Upsized Share Offering At A Discount

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. 

Get updates to this developing story directly on Stocktwits.

Read also: Starbucks Plans 900 Job Cuts, Store Closures With $1 Billion Restructuring Charges

For updates and corrections, email newsroom[at]stocktwits[dot]com.