Moody's affirms Smith

Moody's Investors Service said it affirmed Smith International Inc.'s Baa1 senior unsecured ratings following its announcement to acquire W-H Energy Services, Inc.

The outlook remains positive.

Under the terms of a definitive merger agreement, the agency said that Smith will acquire W-H Energy in exchange for cash consideration of $56.10 and 0.48 share of Smith common stock for each W-H Energy share outstanding.

Smith expected to issue 15.5 million new shares to W-H Energy shareholders, after which Smith's current shareholders own 93% of the combined company and W-H Energy's current stockholders will own 7%, Moody's noted.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.