The company has granted the underwriters a 30-day option to purchase up to 4.2 million additional shares of common stock to cover over-allotments. The transaction is expected to close on November 23, 2009.

Announcement (November 16, 2009):

Smith has announced a public offering of 28 million shares of its common stock.

Smith has also granted the underwriters an option exercisable for a period of 30 days from the date of this prospectus supplement to purchase up to an additional 4.20 million shares of common stock at the public offering price, less the underwriting discount.

J.P. Morgan Securities, Inc. is acting as is acting as the book-running manager of the offering. UBS Securities LLC, Calyon Securities (USA) Inc., DnB NOR Markets, Inc., Fortis Securities LLC, Wells Fargo Securities, LLC and Comerica Securities, Inc. are acting as underwriters for the offering.

Deal Value (US$ Million) 742
Deal Type                IPO
Sub-Category             Secondary Offering
Deal Status              Announced: 2009-11-16

Deal Participants

Target (Company) Smith International, Inc.

Deal Rationale

Smith will use the funds for its debt repayment, general corporate purposes and funding of potential acquisitions or investments.

Offer Price ($ per share) 26.5
No. Shares Issued         28000000

Subject to customary conditions, the offering will close on or about 23 November 2009.

Net proceeds will repay debt, fund potential acquisitions or investments and be used for general corporate purposes.

The acting book-running manager for the offering is JP Morgan Securities Inc.

Comments on this story may be sent to admin@m2.com

SmarTrend is bearish on shares of SII and our subscribers received a Downtrend alert on October 29, 2009 at $29.01, which has returned 7.4% to date.

Write to Chip Brian at cbrian@tradethetrend.com

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Write to Chip Brian at cbrian@tradethetrend.com

---------------------------------------------------------------------------------------------

SmarTrend analyzes over 5,000 securities simultaneously throughout the trading day and provides its subscribers with trend change alerts in real time. To get a free trial of our trading calls and maximize your trading results, please visit http://www.TradeTheTrend.com.

Get exclusive, actionable insight into how the market is expected to trend prior to market open with our free morning newsletter. Sign up at: http://www.TradeTheTrend.com/signup.html