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# Transocean's $750 Million Credit Line Switches On Only If The Valaris Deal Closes
- URL: https://www.bullished.co/transoceans-750-million-credit-line-switches-on-only-if-the-valaris-deal-closes-16f2dcb6/
- Published: 2026-11-03T22:06:47.000Z
- Updated: 2026-11-03T22:06:47.000Z
- Description: The bigger revolver runs to October 2031, but lenders' commitments lapse if conditions are unmet by May 9, 2027.
- Author: Matteo Parrino
- Tags: SEC Filings, RIG, Industry: Energy

[Transocean](https://www.bullished.co/tag/rig/), which provides offshore contract drilling services for oil and gas wells, has lined up a [$750 million revolving credit facility](https://www.sec.gov/Archives/edgar/data/0001451505/000145150526000085/rig-20260930x10q.htm?ref=bullished.co) that takes effect only if its acquisition of Valaris closes, according to its quarterly report filed Tuesday. The company said it can give no assurance on whether or when that happens.

## A bigger, longer revolver with a catch

The amended credit agreement, signed October 15, would raise revolving commitments to $750 million from $510 million and push maturity to October 2031 from June 2028\. It would also modify certain covenants. Parent Transocean Ltd. and some subsidiaries would keep backing the loans, which stay tied to certain drilling rigs as collateral.

Effectiveness depends on the Valaris closing plus other conditions the company calls customary for a secured credit facility. Transocean expects it to take effect at closing or shortly after. If the conditions are not met or waived by May 9, 2027, the lenders' commitments end automatically.

The [prior quarter's report](https://www.sec.gov/Archives/edgar/data/0001451505/000145150526000061/rig-20260630x10q.htm?ref=bullished.co) described only the existing facility, so the amendment is new in this filing.

## The old facility carries the load

Until then the existing facility stays in force on its current terms, and it matures in June 2028 if nothing replaces it. At September 30 it had no borrowings, $97 million of letters of credit and $413 million of available capacity.

The company held $499 million of unrestricted cash and $285 million of restricted cash at quarter-end. In October it paid $168 million to retire $165 million of 8.00% senior secured notes due September 2028.

## Valaris closing and the quarter

Transocean agreed in February to buy Valaris in an all-share deal at 15.235 Transocean shares per Valaris share. In its [earnings release](https://www.sec.gov/Archives/edgar/data/0001451505/000145150526000083/rig-ex99d1.htm?ref=bullished.co), CEO Keelan Adamson said all regulatory approvals are in hand and the closing is expected on December 1.

Third-quarter contract drilling revenue was $937 million and net income was $26 million. Principal debt stood at $4,975 million, against $6,297 million a year earlier. At September 30 the 4.625% exchangeable bonds carried an estimated fair value of $412 million, versus $259 million of principal.

If the December 1 closing holds, the new revolver could take effect shortly afterward, well ahead of the May 9, 2027 deadline.

### Sources

- [10-Q Filing — Transocean (RIG)](https://www.sec.gov/Archives/edgar/data/0001451505/000145150526000085/rig-20260930x10q.htm?ref=bullished.co) — SEC EDGAR
- [10-Q Filing — Transocean (RIG), Q2 FY2026 filed 2026-08-07 (comparison basis)](https://www.sec.gov/Archives/edgar/data/0001451505/000145150526000061/rig-20260630x10q.htm?ref=bullished.co) — SEC EDGAR
- [Earnings release (8-K Item 2.02, rig-ex99d1.htm) — Transocean, filed 2026-11-02](https://www.sec.gov/Archives/edgar/data/0001451505/000145150526000083/rig-ex99d1.htm?ref=bullished.co) — SEC EDGAR

### More on Transocean

- [Transocean Won't Restart Idle Drillships Without A Contract, Even As 2027 Coverage Nears 95%](https://www.bullished.co/transocean-wont-restart-idle-drillships-without-a-contract-even-as-2027-coverage-nears-95-5381a330/)
- [Transocean Board Pitches Valaris Deal With $200 Million In Synergies Ahead Of November 24 Vote](https://www.bullished.co/transocean-board-pitches-valaris-deal-with-200-million-in-synergies-ahead-of-november-24-6cf07301/)
- [Transocean Revenue Slips To $937 Million As Fewer Rigs Work, But Backlog Reaches $8.0 Billion](https://www.bullished.co/transocean-revenue-slips-to-937-million-as-fewer-rigs-work-but-backlog-reaches-8-0-billion-f63d6336/)

[All Transocean (RIG) coverage →](https://www.bullished.co/tag/rig/)