Global offshore drilling giant Transocean Ltd. ( RIG - Analyst Report ) issued equal portions of $750 million in 2.5 %, five-year securities and 3.8 %, 10-year notes. The company sold this $1.5 billion of debt to fund the construction of four drillships.

The 2.5 % securities will yield 190 basis points more than similar securities in the market while the 3.8 % notes will yield 220 basis points more than benchmarks.

Transocean stated that the transaction proceeds will be used for shipbuilding, failing which it will be utilized for general corporate purposes.

As of June 30, 2012, Switzerland-based Transocean owned, had partial ownership interests in, or operated 130 mobile offshore drilling rigs. Transocean’s drilling fleet consists of 50 high-specification deepwater floaters, 25 mid-water floaters, 10 high specification jackups, 44 standard jackups, and one other rig utilized to support offshore drilling activities worldwide. Additionally, the company had 2 ultra-deepwater drillships and 3 high-specification jackups under construction.

Transocean conducts operations in various regions throughout the world, with a substantial portion of its total revenues and earnings coming from international markets. As such, the company is exposed to risks associated with operating in international markets. Such risks include embargoes and/or expropriation of assets, exchange rate risks, terrorism and political/civil sentiment.

The company’s fleet is considered to be one of the most modern and versatile in the world due to its emphasis on technically demanding segments of the offshore drilling business. Transocean’s drillships are contracted by oil biggies such as Chevron Corporation ( CVX - Analyst Report ) , Royal Dutch Shell plc ( RDS.A - Analyst Report ) and BP plc ( BP - Analyst Report ) .

We are maintaining our Neutral recommendation on the stock, as we see limited upside over the near term. Transocean currently retains a Zacks #3 Rank, (short-term Hold rating).