Transocean (RIG) Ends 3-Day Win, Drops on $381-Million Discounted Share Sale

We recently published 10 Big Names Investors Are Dumping. Transocean Ltd. (NYSE:RIG) is one of the companies that heavily bled in Thursday’s trading.

Transoceanic snapped a three-day winning streak on Thursday, slashing 13.19 percent to close at $3.16 apiece as investor sentiment was dampened by plans to raise $381 million through a discounted share sale.

In an updated announcement, Transocean Ltd. (NYSE:RIG) said that it plans to issue 125 million shares at a price of $3.05 apiece, lower by 3.5 percent than its closing price on Thursday.

Transocean Ltd. (NYSE:RIG) said the offering reflects an increase from the 100 million shares originally proposed to be sold.

The offering is expected to close tomorrow, September 26, subject to the satisfaction of customary closing conditions.

In line with the offer, the company also granted its underwriters a 30-day option to purchase up to 18.75 million shares at the public offering price.

Transocean Ltd. (NYSE:RIG) said it intends to use the net proceeds for the repayment or redemption of a portion of the $655 million aggregate principal amount of the 8 percent Senior Notes due February 2027, which were earlier issued by Transocean International Ltd., a wholly owned subsidiary of the company.

The balance, on the other hand, will be allocated for general corporate purposes.

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Disclosure: None. This article is originally published at Insider Monkey.