Todco Closes Secondary

Onetime parent Transocean now holds just 22% of the Houston drilling outfit.
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Todco

(THE)

closed out a 15 million-share secondary offering that raised $258 million for onetime parent

Transocean

(RIG) - Get Report

.

The Houston-based oil driller said Transocean sold 13 million shares at $18 apiece and then tacked on 1.95 million shares for the underwriters' overallotment option.

The offering leaves Transocean with a 22% Todco stake, all in Class A common stock. Transocean converted its remaining shares of Class B common stock into Class A common stock in connection with the offering. As a result, Transocean will no longer consolidate Todco in its financial statements but will account for its remaining investment under the equity method, the companies said.

The offering comes as Transocean continues to reduce its investment in Todco, which once was a wholly owned unit of the Houston-based oil services giant. A secondary offering earlier this fall brought Transocean $270 million.

On Wednesday, Todco dropped 40 cents to $18.29 and Transocean slipped $1.15 to $41.84.