Oil drilling equipment maker, Cameron International Corporation (CAM) has announced the pricing of two sets of unsecured senior notes offering, totaling $500 million. A $250 million principal amount of senior notes, due 2017, will carry an interest rate of 1.40%. Meanwhile, the second $250 million senior notes, due 2024, will carry an interest of 3.70%.
Cameron International declared that the offering is expected to close on Jun 20. The company stated that a part of the proceeds would be used to redeem the senior notes due Apr 30, 2015 that carry an interest of 1.60% while the remaining amount would be used for general corporate purposes.
Houston, TX-based Cameron International is a leading manufacturer of pressure control equipment used in onshore, offshore, and subsea applications for oil and gas drilling, production, and transmission.
The company has a diversified product portfolio, specialty service capabilities and proprietary technological expertise. The other positives for Cameron International include a strong backlog position, increasing international operations and a favorable outlook for subsea activity levels.
Earlier in the month, Cameron International completed the sale of its Reciprocating Compression business to General Electric Company (GE) and received around $550 million in cash. The company expected the move to bode well for the future.
Currently, Cameron International has a Zacks Rank #2 (Buy), implying that it is expected to outperform the broader U.S. market in the next one to three months.
Meanwhile, one can consider other players from the oil field machinery and equipment industry like Matrix Service Company (MTRX) and Superior Energy Services, Inc. (SPN). While Matrix Service sports a Zacks Rank #1 (Strong Buy), Superior Energy holds a Zacks Rank #2.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
To read this article on Zacks.com click here.
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
Be the first to comment