Subsequent Events

9 Months Ended

Sep. 30, 2012

Subsequent Events

Subsequent Events

Note 20—Subsequent Events

Drilling fleet—Subsequent to September 30, 2012, we completed the sale of the Standard Jackup GSF Rig 103 along with related equipment.  At September 30, 2012, this drilling unit and related equipment was classified as held for sale with an aggregate carrying amount of $9 million.

Three-Year Secured Revolving Credit Facility—Subsequent to September 30, 2012, we entered into a bank credit agreement, which establishes a $900 million three-year secured revolving credit facility (the “Three-Year Secured Revolving Credit Facility”) that expires on October 25, 2015.  Borrowings under the Three-Year Secured Revolving Credit Facility will be secured by Deepwater Champion, Discoverer Americas and Discoverer Inspiration and guaranteed by Transocean Ltd. and Transocean Inc.  We may borrow under the Three-Year Secured Revolving Credit Facility at a rate of LIBOR plus a margin that ranges from 0.875 percent to 2.5 percent based on our Debt Rating.  We will also pay a facility fee on the daily unused amount of the underlying commitment, which ranges from 0.125 percent to 0.50 percent depending on our Debt Rating.  Among other things, the Three-Year Secured Revolving Credit Facility contains covenants imposing limitations on creating liens, incurring subsidiary debt, transactions with affiliates, sale/leaseback transactions, mergers and the sale of substantially all assets.  The Three-Year Secured Revolving Credit Facility also contains a covenant imposing a maximum debt to tangible capitalization ratio of 0.6 to 1.0.

Norway tax investigations—Subsequent to September 30, 2012, the European Free Trade Association Court (the “EFTA Court”) in Luxembourg issued an advisory opinion to the Norwegian Courts with respect to an exit tax imposed by the Norwegian tax authorities on the migration of one of our subsidiaries.  The EFTA Court concluded that the Norwegian exit tax imposed was illegal and contrary to European Law.  Although the EFTA Court does not have final authority over the Norwegian courts, this ruling is consistent with the basis on which our tax returns have been prepared.

Macondo well incident—federal securities claims—Our motion to dismiss the securities law allegations with regard to our joint proxy statement was denied on October 4, 2012.  An unrelated action pending in the Second Circuit Court of Appeals involving other parties involves a legal question that could be relevant to the disposition of this case.  Defendants have filed a motion asking that this case be stayed until that appeal has been decided, and the court has postponed commencement of discovery until January 2013 to allow time for that motion to be briefed.