Transocean Partners LLC, an LLC formed by Transocean to own three deepwater rigs in the Gulf of Mexico, announced terms for its IPO on Tuesday. Transocean, which is based in Aberdeen, United Kingdom, plans to raise $350 million by offering 17.5 million units (100% insider) at a price range of $19 to $21. At the midpoint of the proposed range, Transocean Partners LLC would command a fully diluted market value of $1.4 billion.
Transocean Partners currently operates its three rigs under long-term contracts with Chevron (CVX) and BP (BP).
Transocean Partners LLC, which was formed in 2014 and booked $558 million in historical sales for the 12 months ended March 31, 2014, plans to list on the NYSE under the symbol RIGP. Morgan Stanley, Barclays, Citi, J.P. Morgan and Wells Fargo Securities are the joint bookrunners on the deal. It is expected to price during the week of July 28, 2014.
