National Oilwell Varco completes acquisition of Grant Prideco

By Lisa Kerner

Charlotte, N.C., April 21 - National Oilwell Varco, Inc. said it acquired Grant Prideco, Inc. following the receipt of Grant Prideco stockholders' approval at a special meeting on Monday.

Under the terms of the Houston-based companies' agreement, Grant Prideco merged with and into a wholly owned subsidiary of National Oilwell Varco, a National Oilwell Varco news release said.

National Oilwell Varco issued some 56.86 million shares of its common stock and paid approximately $2.93 billion in cash, funded using proceeds from two new credit facilities and cash on hand, according to the release.

In addition, National Oilwell Varco announced the final results of its related exchange offer. As of the 9 a.m. ET deadline on April 21, $150.82 million in total principal amount of 6 1/8% senior notes due 2015 issued by Grant Prideco, or 86% of the outstanding Grant Prideco notes, had been validly tendered in the exchange.

National Oilwell Varco accepted the tendered notes and issued $150.82 million in total principal amount of its 6 1/8% senior notes due 2015.

In December, National Oilwell agreed to acquire Grant Prideco for $58.00 per share consisting of $23.20 in cash and 0.4498 of a share of National Oilwell.

National Oilwell manufactures and sells equipment and components used in oil and gas drilling and production operations.

Grant Prideco specializes in drill bits, drill stem technology and specialty tools for the oil and gas industries.

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