Boston, MA 08/01/2014 (wallstreetpr) – Transocean Partners Holdings Limited is a subsidiary of Transocean LTD (NYSE:RIG). The wholly owned subsidiary has announced the pricing of the initial public offering of as many as 17,500,000 common units. The offering is finalized at $22.00 per unit. The underwriters will have additional time of 30 days to purchase the additional shares up to 2,625,000 common units.
Limited liability company interest
The offering of Transocean forms a 25.4% limited liability company interest in the parent company. It can reach 29.2% if the underwriters can purchase the allowed additional common units in defined period. The common units will trade on New York Stock Exchange under the symbol “RIGP.” The last date of offering is August 5, 2014. It will be as per customary closing conditions.
Other details
The joint book-runners for the offering are Wells Fargo securities, Citigroup, Morgan Stanley, Barclays and J.P. Morgan. The co-managers will be DNB Markets, Credit Agricole CIB, Standard Chartered, MUFG, Goldman Sachs & Co., Credit Suisse and BofA Merrill Lynch. The partnership will allow Transocean LTD (NYSE:RIG) to provide a quarterly distribution of $0.36 per share. The estimated yield is calculated at 7.3%. It is a healthy yield price if Transocean can maintain it in the long-term. The cash available for distribution in the financial year 2015 will be $110 million.
The financial results
Transocean Partners reported the first quarter results wherein the unaudited revenues rose 28.1% on year-over-year to $146 million. The net income margin came at 42.6% in 1QFY14 that was 11.6% higher YoY. Transocean LTD (NYSE:RIG) expects the FY15 revenue to rise by 6.2% at $549 million. Transocean, the drilling services firm, has to deal with the risks associated with insufficient cash from operations, the revenues coming from the Gulf Of Mexico and others. As of now, it has only two customers for revenues generation.
