Offshore driller Transocean is looking to benefit from a continuous rise in its stock price in the past months by setting up a plan to raise additional cash.
The company has recently entered into an equity distribution agreement with Jefferies to sell up to $400m in shares.
Transocean said in a filing earlier this week it intends to use the net proceeds from the repayment or refinancing of debt and the funding of working capital, capital expenditures, investments and additional balance sheet liquidity.
The company’s shares have jumped over 81% year to date at $4.21, after trading as low as $0.67 per share last October.
The driller also recently struck a deal with Jurong Shipyard, a Sembcorp Marine subsidiary, to delay the delivery of two ultra-deepwater drillships and for Jurong to take deferred payment for both rigs. The deal secures around $460m of shipyard financing.