By Andrea Heisinger
New York, March 16 - Smith International, Inc. priced $1 billion of senior notes (Baa1/BBB+) Monday in two tranches, a market source said.
The $300 million of 8.625% five-year notes priced at 99.672 to yield 8.708%, or Treasuries plus 680 basis points.
The $700 million of 9.75% 10-year notes priced at 99.652 to yield 9.758%, or Treasuries plus 680 bps.
Both tranches have a make-whole redemption at Treasuries plus 50 bps.
Both tranches feature a change-of-control put of 101%.
Bookrunners were J.P. Morgan Securities Inc., Calyon Securities, Banc of America Securities LLC and Wachovia Capital Markets LLC.
Proceeds will be used to help repay a $1 billion senior unsecured bridge loan facility used to fund an acquisition and repay debt under a U.S. revolving credit facility.
The oil and natural gas drilling equipment company is based in Houston.
| Issuer: | Smith International, Inc.
|
| Issue: | Senior notes
|
| Total amount: | $1 billion
|
| Bookrunners: | J.P. Morgan Securities Inc., Calyon Securities, Banc of America Securities LLC, Wachovia Capital Markets LLC
|
| Change-of-control put: | 101%
|
| Trade date: | March 16
|
| Settlement date: | March 19
|
| Ratings: | Moody's: Baa1
|
| Standard & Poor's: BBB+
|
|
|
| Five-year notes
|
| Amount: | $300 million
|
| Maturity: | March 15, 2014
|
| Coupon: | 8.625%
|
| Price: | 99.672
|
| Yield: | 8.708%
|
| Spread: | Treasuries plus 680 bps
|
| Call: | Make-whole at Treasuries plus 50 bps
|
|
|
| 10-year notes
|
| Amount: | $700 million
|
| Maturity: | March 15, 2019
|
| Coupon: | 9.75%
|
| Price: | 99.652
|
| Yield: | 9.758%
|
| Spread: | Treasuries plus 680 bps
|
| Call: | Make-whole at Treasuries plus 50 bps
|
© 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.
