Company: RIG
Filing Date: 2025-09-24
Form Type: 424B5
Source: 0001451505-25-000097
Chunk: 33

Company: Transocean Ltd.
Filing Date: 2025-09-24
Form: 424B5
Chunk 33
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 that produce, or are held for the production of, passive income is at least 50%. |

For this purpose, we are deemed to own our proportionate share of the assets and to receive directly our proportionate share of the income of any (i) other corporation in which we own, directly or indirectly, at least 25% of the value of such corporation’s stock and (ii) any partnership in which we own, directly or indirectly, at least 25% of the value of the equity interests of such partnership or satisfy an “active partner” test and do not elect out of “look through” treatment for such partnership.

S-20

We believe that we were not a PFIC for our taxable year ended December 31, 2024, and we do not anticipate becoming a PFIC in the foreseeable future. That said, the determination of whether we are a PFIC is fact-intensive, based upon the composition of our assets and income at any given time, and made on an annual basis applying principles and methodologies that in some circumstances are unclear and subject to varying interpretation. Accordingly, no assurance can be given that we will not be a PFIC in respect of our current taxable year or in future taxable years. Moreover, there can be no assurance that the IRS will not challenge any determination made by us that we do not constitute a PFIC.

As discussed more fully below, if we were to be treated as a PFIC for any taxable year, a U.S. Holder would be subject to different, generally adverse, taxation rules depending on whether or not the U.S. Holder makes (i) an election to treat us as a qualified electing fund (a “QEF” election) or (ii) a “mark-to-market” election with respect to the shares, as discussed below. If we are a PFIC, a U.S. Holder will generally be subject to the PFIC rules described herein with respect to any of our subsidiaries that are PFICs. However, the mark-to-market election discussed below will likely not be available with respect to shares of any such PFIC subsidiaries. In addition, if a U.S. Holder owns shares during any taxable year in which we are a PFIC, such U.S. Holder must file an annual report with the IRS on IRS Form 8621. A failure to file this report as required may toll the running of the statute of limitations in respect of each of the U.S. Holder’s taxable years for which the report is required to be filed. As