Transocean closed a five-year, $1 billion senior secured revolving credit facility, with Citibank acting as administrative agent and Wells Fargo Securities as syndication agent on the transaction.

The new revolver includes an accordion feature that permits an increase in capacity to $1.5 billion, subject to additional lender commitments, and replaces the company’s existing revolving credit facility.

“We have further extended our liquidity runway with our new revolving credit facility and the additional private offering of secured debt, proceeds of which are to be used to partially refinance indebtedness associated with the Songa acquisition,” said Mark Mey, executive vice president and CFO. “Additionally, these latest transactions enable us to maintain significant financial flexibility and strategic optionality as the offshore market recovers.”

Certain intermediate holding companies of Transocean that own interests in the company’s fleet of rigs have guaranteed the obligations under the new facility. In addition, two of the company’s harsh environment semi-submersibles, three of its ultra-deepwater drillships and related assets are pledged as collateral.

Transocean provides offshore contract drilling services for oil and gas wells all around the world.