SAN FRANCISCO, Nov 16 - Smith International Inc (SII.N) is raising equity now worth more than $800 million, the oilfield services company said on Monday, sending its shares down 5 percent.
Smith is issuing 28 million shares in a public offering, adding to more than 219 million outstanding as of earlier this month, and use the proceeds for debt repayment, general corporate purposes and potential acquisitions or investments.
The Houston-based company has given underwriters a 30-day option to buy 4.2 million shares if necessary under the offering, with JP Morgan acting as book-running manager.
In after-hours trading, shares of Smith handed back the day's 4.5 percent gain, dropping 5.1 percent to $29.19, valuing the 28 million shares on offer at $817 million.
Last month, Smith got a new chief financial officer, before reporting a 97 percent drop in third-quarter profit despite some deep cost-cutting this year in response to a collapse in North American drilling demand.
Smith is issuing 28 million shares in a public offering, adding to more than 219 million outstanding as of earlier this month, and use the proceeds for debt repayment, general corporate purposes and potential acquisitions or investments.
The Houston-based company has given underwriters a 30-day option to buy 4.2 million shares if necessary under the offering, with JP Morgan acting as book-running manager.
In after-hours trading, shares of Smith handed back the day's 4.5 percent gain, dropping 5.1 percent to $29.19, valuing the 28 million shares on offer at $817 million.
Last month, Smith got a new chief financial officer, before reporting a 97 percent drop in third-quarter profit despite some deep cost-cutting this year in response to a collapse in North American drilling demand.
