Transocean Ltd. [RIG] Filings

10-Q 1 rig-20220331x10q.htm 10-Q

Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark one)

☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2022

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _____ to _____

Commission file number 001-38373

Transocean Ltd.

(Exact name of registrant as specified in its charter)

Switzerland	98-0599916
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

Turmstrasse 30 Steinhausen, Switzerland	6312
(Address of principal executive offices)	(Zip Code)


+41 (41) 749-0500
(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:



Title of each class	Trading symbol	Name of each exchange on which registered
Shares, CHF 0.10 par value	RIG	New York Stock Exchange
0.50% Exchangeable Senior Bonds due 2023	RIG/23	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ No ◻

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes þ No ◻

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer þ Accelerated filer ◻ Non-accelerated filer ◻ Smaller reporting company ☐ Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ◻

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No þ

As of April 25, 2022, 681,055,951 shares were outstanding.

Table of Contents

TRANSOCEAN LTD. AND SUBSIDIARIES

INDEX TO QUARTERLY REPORT ON FORM 10-Q

QUARTER ENDED March 31, 2022


		Page
PART I.	FINANCIAL INFORMATION
Item 1.	Financial Statements (Unaudited)
	Condensed Consolidated Statements of Operations	1
	Condensed Consolidated Statements of Comprehensive Loss	2
	Condensed Consolidated Balance Sheets	3
	Condensed Consolidated Statements of Equity	4
	Condensed Consolidated Statements of Cash Flows	5
	Notes to Condensed Consolidated Financial Statements	6
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	14
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	22
Item 4.	Controls and Procedures	22

PART II.	OTHER INFORMATION
Item 1.	Legal Proceedings	23
Item 1A.	Risk Factors	23
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	23
Item 6.	Exhibits	24

Table of Contents

PART I. FINANCIAL INFORMATION

Item I.

Financial Statements

TRANSOCEAN LTD. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(In millions, except per share data)

(Unaudited)


	Three months ended
	March 31,
	2022		2021

Contract drilling revenues	$	586	$	653

Costs and expenses
Operating and maintenance		412		435
Depreciation and amortization		183		187
General and administrative		42		39
		637		661

Gain (loss) on disposal of assets, net		1		(59)
Operating loss		(50)		(67)

Other income (expense), net
Interest income		2		3
Interest expense, net of amounts capitalized		(102)		(115)
Gain on retirement of debt		—		51
Other, net		1		9
		(99)		(52)
Loss before income tax expense (benefit)		(149)		(119)
Income tax expense (benefit)		26		(21)

Net loss		(175)		(98)
Net income attributable to noncontrolling interest		—		1
Net loss attributable to controlling interest	$	(175)	$	(99)

Loss per share, basic and diluted	$	(0.26)	$	(0.16)
Weighted-average shares, basic and diluted		664		617

See accompanying notes.

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TRANSOCEAN LTD. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(In millions)

(Unaudited)


	Three months ended
	March 31,
	2022		2021

Net loss	$	(175)	$	(98)
Net income attributable to noncontrolling interest		—		1
Net loss attributable to controlling interest		(175)		(99)

Components of net periodic benefit costs before reclassifications		(11)		(5)
Components of net periodic benefit costs reclassified to net loss		1		1

Other comprehensive loss before income taxes		(10)		(4)
Income taxes related to other comprehensive loss		—		—
Other comprehensive loss		(10)		(4)
Other comprehensive income attributable to noncontrolling interest		—		—
Other comprehensive loss attributable to controlling interest		(10)		(4)

Total comprehensive loss		(185)		(102)
Total comprehensive income attributable to noncontrolling interest		—		1
Total comprehensive loss attributable to controlling interest	$	(185)	$	(103)

See accompanying notes.

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TRANSOCEAN LTD. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In millions, except share data)

(Unaudited)


	March 31,		December 31,
	2022		2021

Assets
Cash and cash equivalents	$	911	$	976
Accounts receivable, net of allowance of $2 at March 31, 2022 and December 31, 2021		525		492
Materials and supplies, net of allowance of $188 and $183 at March 31, 2022 and December 31, 2021, respectively		386		392
Restricted cash and cash equivalents		315		436
Other current assets		142		148
Total current assets		2,279		2,444

Property and equipment		23,245		23,152
Less accumulated depreciation		(6,232)		(6,054)
Property and equipment, net		17,013		17,098
Contract intangible assets		144		173
Deferred tax assets, net		7		7
Other assets		920		959
Total assets	$	20,363	$	20,681

Liabilities and equity
Accounts payable	$	206	$	228
Accrued income taxes		19		17
Debt due within one year		636		513
Other current liabilities		491		545
Total current liabilities		1,352		1,303

Long-term debt		6,375		6,657
Deferred tax liabilities, net		470		447
Other long-term liabilities		1,035		1,068
Total long-term liabilities		7,880		8,172

Commitments and contingencies

Shares, CHF 0.10 par value, 891,379,306 authorized, 142,363,356 conditionally authorized, 754,244,072 issued
and 681,055,270 outstanding at March 31, 2022, and 891,379,306 authorized, 142,363,356 conditionally
authorized, 728,176,456 issued and 655,505,335 outstanding at December 31, 2021		67		64
Additional paid-in capital		13,790		13,683
Accumulated deficit		(2,633)		(2,458)
Accumulated other comprehensive loss		(94)		(84)
Total controlling interest shareholders’ equity		11,130		11,205
Noncontrolling interest		1		1
Total equity		11,131		11,206
Total liabilities and equity	$	20,363	$	20,681

See accompanying notes.

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TRANSOCEAN LTD. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

(In millions)

(Unaudited)


	Three months ended
	March 31,
	2022		2021
Shares
Balance, beginning of period	$	64	$	60
Issuance of shares		3		—
Balance, end of period		67	$	60

Additional paid-in capital
Balance, beginning of period	$	13,683	$	13,501
Share-based compensation		7		7
Issuance of shares		100		—
Balance, end of period	$	13,790	$	13,508

Accumulated deficit
Balance, beginning of period	$	(2,458)	$	(1,866)
Net loss attributable to controlling interest		(175)		(99)
Balance, end of period	$	(2,633)	$	(1,965)

Accumulated other comprehensive loss
Balance, beginning of period	$	(84)	$	(263)
Other comprehensive loss attributable to controlling interest		(10)		(4)
Balance, end of period	$	(94)	$	(267)

Total controlling interest shareholders’ equity
Balance, beginning of period	$	11,205	$	11,432
Total comprehensive loss attributable to controlling interest		(185)		(103)
Share-based compensation		7		7
Issuance of shares		103		—
Balance, end of period	$	11,130	$	11,336

Noncontrolling interest
Balance, beginning of period	$	1	$	3
Total comprehensive income attributable to noncontrolling interest		—		1
Balance, end of period	$	1	$	4

Total equity
Balance, beginning of period	$	11,206	$	11,435
Total comprehensive loss		(185)		(102)
Share-based compensation		7		7
Issuance of shares		103		—
Balance, end of period	$	11,131	$	11,340

See accompanying notes.

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TRANSOCEAN LTD. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In millions)

(Unaudited)


	Three months ended
	March 31,
	2022		2021
Cash flows from operating activities
Net loss	$	(175)	$	(98)
Adjustments to reconcile to net cash provided by (used in) operating activities:
Contract intangible asset amortization		29		56
Depreciation and amortization		183		187
Share-based compensation expense		7		7
(Gain) loss on disposal of assets, net		(1)		59
Gain on retirement of debt		—		(51)
Deferred income tax expense		23		2
Other, net		21		7
Changes in deferred revenues, net		(11)		(37)
Changes in deferred costs, net		(4)		3
Changes in other operating assets and liabilities, net		(73)		(39)
Net cash provided by (used in) operating activities		(1)		96

Cash flows from investing activities
Capital expenditures		(106)		(59)
Investments in unconsolidated affiliates		(15)		—
Proceeds from disposal of assets, net		1		6
Net cash used in investing activities		(120)		(53)

Cash flows from financing activities
Repayments of debt		(165)		(139)
Proceeds from issuance of shares, net of issue costs		103		—
Other, net		(3)		(10)
Net cash used in financing activities		(65)		(149)

Net decrease in unrestricted and restricted cash and cash equivalents		(186)		(106)
Unrestricted and restricted cash and cash equivalents, beginning of period		1,412		1,560
Unrestricted and restricted cash and cash equivalents, end of period	$	1,226	$	1,454

See accompanying notes.

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TRANSOCEAN LTD. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 1—Business

Transocean Ltd. (together with its subsidiaries and predecessors, unless the context requires otherwise, “Transocean,” “we,” “us” or “our”) is a leading international provider of offshore contract drilling services for oil and gas wells. As of March 31, 2022, we owned or had partial ownership interests in and operated a fleet of 37 mobile offshore drilling units, consisting of 27 ultra-deepwater floaters and 10 harsh environment floaters. As of March 31, 2022, we were constructing two ultra-deepwater drillships.

Note 2—Significant Accounting Policies

Presentation—We prepared our accompanying unaudited condensed consolidated financial statements in accordance with accounting principles generally accepted in the United States (“U.S.”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X of the U.S. Securities and Exchange Commission. Pursuant to such rules and regulations, these financial statements do not include all disclosures required by accounting principles generally accepted in the U.S. for complete financial statements. The condensed consolidated financial statements reflect all adjustments, which are, in the opinion of management, necessary for a fair presentation of financial position, results of operations and cash flows for the interim periods. Such adjustments are considered to be of a normal recurring nature unless otherwise noted. Operating results for the three months ended March 31, 2022, are not necessarily indicative of the results that may be expected for the year ending December 31, 2022, or for any future period. The accompanying condensed consolidated financial statements and notes thereto should be read in conjunction with the audited consolidated financial statements and notes thereto as of December 31, 2021 and 2020, and for each of the three years in the period ended December 31, 2021, included in our annual report on Form 10-K filed on February 23, 2022.

Accounting estimates—To prepare financial statements in accordance with accounting principles generally accepted in the U.S., we must make judgments by applying estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and the disclosures of contingent assets and liabilities. On an ongoing basis, we evaluate our estimates and assumptions, including those related to our income taxes, property and equipment, equity investments, contingencies, allowance for excess materials and supplies, intangibles, postemployment benefit plans and share-based compensation. We base our estimates and assumptions on historical experience and other factors that we believe are reasonable. Actual results could differ from such estimates.

Fair value measurements—We estimate fair value at an exchange price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. Our valuation techniques require inputs that we categorize using a three-level hierarchy, from highest to lowest level of observable inputs, as follows: (1) significant observable inputs, including unadjusted quoted prices for identical assets or liabilities in active markets (“Level 1”), (2) significant other observable inputs, including direct or indirect market data for similar assets or liabilities in active markets or identical assets or liabilities in less active markets (“Level 2”) and (3) significant unobservable inputs, including those that require considerable judgment for which there is little or no market data (“Level 3”). When a valuation requires multiple input levels, we categorize the entire fair value measurement according to the lowest level of input that is significant to the measurement even though we may have also utilized significant inputs that are more readily observable.

Note 3—Unconsolidated Affiliates

Equity investments—We hold noncontrolling equity investments in various unconsolidated companies, including (a) our 33.0 percent ownership interest in Orion Holdings (Cayman) Limited (together with its subsidiary, “Orion”), a Cayman Islands company that, through its wholly owned subsidiary, owns the harsh environment floater Transocean Norge, (b) our interests in certain companies that are involved in researching and developing technology to improve efficiency, reliability, sustainability and safety for drilling and other activities and (c) our interest in Ocean Minerals LLC, the parent company of Moana Minerals Ltd., a Cook Islands subsea resource development company that was recently awarded an exploration license by the Cook Islands Seabed Minerals Authority, granting it exploration rights to a large subsea geographic area with substantial quantities of polymetallic nodules. In the three months ended March 31, 2022, we made an aggregate cash contribution of $15 million to our equity investments. At March 31, 2022 and December 31, 2021, the aggregate carrying amount of our equity investments was $98 million and $91 million, respectively, recorded in other assets, of which the aggregate carrying amount of our equity investment in Orion was $54 million and $57 million, respectively.

Related party transactions—We engage in certain related party transactions with our unconsolidated affiliates, the most significant of which are under agreements with Orion. We operate, stack and maintain Transocean Norge under a management services agreement, and we market Transocean Norge under a marketing services agreement. We lease Transocean Norge under a short-term bareboat charter agreement, which is scheduled to expire in October 2022. Additionally, we procure and provide services and equipment from and to other unconsolidated affiliates for technological innovation and subsea minerals exploration.

In June 2021, Orion refinanced its shipyard loans under a financing arrangement for $100 million, in which we participated at a rate equivalent to our ownership interest in Orion. At March 31, 2022 and December 31, 2021, the principal amount of outstanding borrowings due to us under the financing arrangement was $34 million, recorded in other assets.

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TRANSOCEAN LTD. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS─continued

(Unaudited)

Note 4—Revenues

Overview—Our drilling services represent a single performance obligation under our drilling contracts with customers that is satisfied over time, the duration of which varies by contract. As of March 31, 2022, the drilling contract with the longest expected remaining duration, excluding unexercised options, extends through February 2028.

Disaggregation—Our contract drilling revenues, disaggregated by asset group and by country in which they were earned, were as follows (in millions):


	Three months ended March 31, 2022								Three months ended March 31, 2021
	U.S.		Norway		Other (a)		Total		U.S.		Norway		Other (a)		Total
Ultra-deepwater floaters	$	268	$	—	$	122	$	390	$	266	$	—	$	170	$	436
Harsh environment floaters		—		193		3		196		4		202		11		217
Total contract drilling revenues	$	268	$	193	$	125	$	586	$	270	$	202	$	181	$	653

(a)	Other represents the aggregate value for countries in which we operate that individually had attributable operating revenues representing less than 10 percent of consolidated operating revenues earned.

Contract liabilities—Contract liabilities for our contracts with customers were as follows (in millions):


	March 31,		December 31,
	2022		2021
Deferred contract revenues, recorded in other current liabilities	$	86	$	83
Deferred contract revenues, recorded in other long-term liabilities		251		265
Total contract liabilities	$	337	$	348

Significant changes in contract liabilities were as follows (in millions):


	Three months ended
	March 31,
	2022		2021
Total contract liabilities, beginning of period	$	348	$	456
Decrease due to recognition of revenues for goods and services		(26)		(44)
Increase due to goods and services transferred over time		15		7
Total contract liabilities, end of period	$	337	$	419

Pre-operating costs—In the three months ended March 31, 2022 and 2021, we recognized pre-operating costs of $12 million and $14 million, respectively, recorded in operating and maintenance costs. At March 31, 2022 and December 31, 2021, the carrying amount of our unrecognized pre-operating costs to obtain contracts was $27 million and $21 million, respectively, recorded in other assets.

Note 5—Long-Lived Assets

Construction work in progress—The changes in our construction work in progress were as follows (in millions):


	Three months ended
	March 31,
	2022		2021
Construction work in progress, beginning of period	$	1,017	$	828

Capital expenditures
Newbuild construction program		92		45
Other equipment and construction projects		14		14
Total capital expenditures		106		59
Changes in accrued capital additions		(12)		(7)

Property and equipment placed into service		(12)		(14)
Construction work in progress, end of period	$	1,099	$	866

Dispositions—During the three months ended March 31, 2021, in connection with our efforts to dispose of non-strategic assets, we completed the sale of the harsh environment floater Leiv Eiriksson and related assets. In the three months ended March 31, 2021, we received aggregate net cash proceeds of $4 million and recognized an aggregate net loss of $60 million ($0.10 per diluted share), which had no tax effect, associated with the disposal of these assets.

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TRANSOCEAN LTD. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS─continued

(Unaudited)

Note 6—Debt

Overview

Outstanding debt—The aggregate principal amounts and aggregate carrying amounts, including the contractual interest payments of previously restructured debt and unamortized debt-related balances, such as discounts, premiums and issue costs, were as follows (in millions):


	Principal amount				Carrying amount
	March 31,		December 31,		March 31,		December 31,
	2022		2021		2022		2021
5.52% Senior Secured Notes due May 2022	$	—	$	18	$	—	$	18
3.80% Senior Notes due October 2022		27		27		27		27
0.50% Exchangeable Senior Bonds due January 2023		140		140		140		140
5.375% Senior Secured Notes due May 2023		306		306		304		304
5.875% Senior Secured Notes due January 2024		393		435		389		430
7.75% Senior Secured Notes due October 2024		300		300		296		296
6.25% Senior Secured Notes due December 2024		313		313		309		309
6.125% Senior Secured Notes due August 2025		369		402		364		397
7.25% Senior Notes due November 2025		411		411		407		406
4.00% Senior Guaranteed Exchangeable Bonds due December 2025		294		294		266		264
7.50% Senior Notes due January 2026		569		569		566		565
2.50% Senior Guaranteed Exchangeable Bonds due January 2027		238		238		268		271
11.50% Senior Guaranteed Notes due January 2027		687		687		1,043		1,078
6.875% Senior Secured Notes due February 2027		516		550		510		544
8.00% Senior Notes due February 2027		612		612		608		607
7.45% Notes due April 2027		52		52		52		52
8.00% Debentures due April 2027		22		22		22		22
7.00% Notes due June 2028		261		261		265		265
7.50% Notes due April 2031		396		396		394		394
6.80% Senior Notes due March 2038		610		610		605		605
7.35% Senior Notes due December 2041		177		177		176		176
Total debt		6,693		6,820		7,011		7,170

Less debt due within one year
5.52% Senior Secured Notes due May 2022		—		18		—		18
3.80% Senior Notes due October 2022		27		27		27		27
0.50% Exchangeable Senior Bonds due January 2023		140		—		140		—
5.375% Senior Secured Notes due May 2023		63		63		62		62
5.875% Senior Secured Notes due January 2024		83		83		81		80
7.75% Senior Secured Notes due October 2024		60		60		58		58
6.25% Senior Secured Notes due December 2024		62		62		61		61
6.125% Senior Secured Notes due August 2025		66		66		64		64
2.50% Senior Guaranteed Exchangeable Bonds due January 2027		—		—		6		6
11.50% Senior Guaranteed Notes due January 2027		—		—		70		70
6.875% Senior Secured Notes due February 2027		69		69		67		67
Total debt due within one year		570		448		636		513
Total long-term debt	$	6,123	$	6,372	$	6,375	$	6,657

Scheduled maturities—At March 31, 2022, scheduled maturities of our debt, including the principal installments and other installments, representing the contractual interest payments of previously restructured debt, were as follows (in millions):


	Principal		Other
	installments		installments		Total
Twelve months ending March 31,
2023	$	570	$	76	$	646
2024		818		77		895
2025		516		77		593
2026		1,528		78		1,606
2027		1,743		78		1,821
Thereafter		1,518		—		1,518
Total installments of debt	$	6,693	$	386		7,079
Total unamortized debt-related balances, net						(68)
Total carrying amount of debt					$	7,011

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TRANSOCEAN LTD. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS─continued

(Unaudited)

Credit agreements

Secured Credit Facility—As of March 31, 2022, we have a $1.33 billion secured revolving credit facility established under a bank credit agreement (as amended from time to time, the “Secured Credit Facility”), which is scheduled to mature on June 22, 2023. The Secured Credit Facility is guaranteed by Transocean Ltd. and certain wholly owned subsidiaries. We may borrow under the Secured Credit Facility at either (1) the reserve adjusted London Interbank Offered Rate plus a margin (the “Secured Credit Facility Margin”), which ranges from 2.625 percent to 3.375 percent based on the credit rating of the Secured Credit Facility, or (2) the base rate specified in the credit agreement plus the Secured Credit Facility Margin, minus one percent per annum. Throughout the term of the Secured Credit Facility, we pay a facility fee on the amount of the underlying commitment, which ranges from 0.375 percent to 1.00 percent based on the credit rating of the Secured Credit Facility. At March 31, 2022, based on the credit rating of the Secured Credit Facility on that date, the Secured Credit Facility Margin was 3.375 percent and the facility fee was 0.875 percent. At March 31, 2022, we had no borrowings outstanding, $14 million of letters of credit issued, and we had $1.32 billion of available borrowing capacity under the Secured Credit Facility.

Shipyard financing arrangement—In June 2021, one of our wholly owned subsidiaries entered into credit agreements with Jurong Shipyard Pte Ltd. establishing facilities (the “Shipyard Loans”) to finance all or a portion of the final payments expected to be owed to the shipyard upon delivery of the ultra-deepwater floaters Deepwater Atlas and Deepwater Titan. The Shipyard Loans are guaranteed by Transocean Inc. Borrowings under the Shipyard Loan for Deepwater Atlas will be secured by, among other security, a lien on the rig. In certain circumstances, borrowings under the Shipyard Loan for Deepwater Titan may also be secured by, among other security, a lien on the rig. We will repay the borrowings, together with interest of 4.5 percent per annum, according to the selected installment schedule over a maximum of a six-year period following delivery of the drilling rigs. We have the right to prepay any outstanding borrowings, in full or in part, without penalty. The Shipyard Loans contain covenants that, among other things, limit the ability of the subsidiary owners of the drilling rigs to incur certain types of additional indebtedness or make certain additional commitments or investments. At March 31, 2022, we had no borrowings outstanding under the Shipyard Loans.

Exchangeable bonds

Exchange terms—At March 31, 2022, the (a) current exchange rates, expressed as the number of Transocean Ltd. shares per $1,000 note, (b) implied exchange prices per Transocean Ltd. share and (c) aggregate shares, expressed in millions, issuable upon exchange of our exchangeable bonds were as follows:


			Implied
	Exchange		exchange		Shares
	rate		price		issuable
0.50% Exchangeable Senior Bonds due January 2023		97.29756	$	10.28		13.6
4.00% Senior Guaranteed Exchangeable Bonds due December 2025		190.47620		5.25		56.0
2.50% Senior Guaranteed Exchangeable Bonds due January 2027		162.16260		6.17		38.6

The exchange rates of our exchangeable bonds, identified above, are subject to adjustment upon the occurrence of certain events. The 0.50% exchangeable senior bonds due January 2023 (the “0.50% Exchangeable Senior Bonds”) may be exchanged by holders into Transocean Ltd. shares at an