Company: RIG
Filing Date: 2025-10-30
Form Type: 10-Q
Source: 0001451505-25-000123
Chunk: 18

Company: Transocean Ltd.
Filing Date: 2025-10-30
Form: 10-Q
Item: Item 3
Chunk 18
---
Item 3.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.  With the exception of the following, there have been no material changes to our market risks as previously disclosed in “Part II. Item 7A. Quantitative and Qualitative Disclosures About Market Risk” in our annual report on Form 10-K for the year ended December 31, 2024.

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 September 30, 2025 (in millions, except interest rate percentages):

​​​​​​​​​​​​​​​​​​​​​​​​​​​​Twelve months ending September 30,​​​​​​​​​ ​  2026​2027​2028​2029​2030​Thereafter​Total    Fair value Debt​​​​​​​​​​​​​​​​​​​​​​​​​Fixed rate (USD) $ 1,390​$ 473​$ 664​$ 1,276​$ 411​$ 2,083​$ 6,297​$ 6,241​Average interest rate​​ 7.47%  ​ 7.41%  ​ 7.83%  ​ 7.56%  ​ 8.75%  ​ 7.88%  ​​​​​​

​

At September 30, 2025 and December 31, 2024, the fair value of our outstanding debt was $6.24 billion and $6.89 billion, respectively.  In the nine months ended September 30, 2025, the fair value of our debt decreased by $647 million due to the following: (a) a decrease of $455 million resulting from scheduled repayments and (b) a decrease of $208 million due to principal reduction of the 4.00% Exchangeable Bonds pursuant to the Exchange Agreements, partially offset by (c) a net increase of $16 million resulting from changes in the market prices of our outstanding