Company: RIG
Filing Date: 2025-02-18
Form Type: 10-K
Source: 0001451505-25-000018
Chunk: 37

Company: Transocean Ltd.
Filing Date: 2025-02-18
Form: 10-K
Item: Item 7A
Chunk 37
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Item 7A.Quantitative and Qualitative Disclosures About Market Risk

Overview—We are exposed to interest rate risk, primarily associated with our long-term debt, including current maturities.  Additionally, we are exposed to equity price risk related to certain of our exchangeable bonds and currency exchange rate risk related to our international operations.

Interest rate risk—The following table presents the scheduled installment amounts and related weighted-average interest rates of our long-term debt instruments by contractual maturity date.  The following table presents information as of December 31, 2024, for each of the five years in the period ending December 31, 2029 and thereafter (in millions, except interest rate percentages):

​​​​​​​​​​​​​​​​​​​​​​​​​​​​Years ending December 31,​​​​​​​​​ ​  2025​2026​2027​2028​2029​Thereafter​Total    Fair value Debt​​​​​​​​​​​​​​​​​​​​​​​​​Fixed rate (USD) $ 714​$ 541​$ 1,255​$ 664​$ 1,276​$ 2,494​$ 6,944​$ 6,888​Average interest rate​​ 6.15%  ​ 7.21%  ​ 7.74%  ​ 7.83%  ​ 7.56%  ​ 8.03%  ​​​​​​

At December 31, 2024 and 2023, the fair value of our outstanding debt was $6.89 billion and $7.31 billion, respectively.  During the year ended December 31, 2024, the fair value of our debt decreased by $420 million due to the following: (a) a decrease of $1.69 billion resulting from debt retired in tender offers and redemptions, (b) a decrease of $351 million resulting from debt repaid in scheduled installments and (c) a net decrease of $275 million resulting from changes in the market prices of our outstanding debt, including the fair value adjustment to the bifurcated compound exchange feature contained in the indenture governing the 4.625% Senior Guaranteed Exchangeable Bonds, partially offset by (d) an increase of $1.77 billion resulting