fwp
Filed Pursuant to Rule 433
Issuer Free Writing Prospectus dated March 16, 2009 Relating to
Preliminary Prospectus Supplement dated March 16, 2009
To Prospectus dated September 23, 2008
Registration Statement No. 333-153631
SMITH INTERNATIONAL, INC.
Final Pricing Term Sheet
         
Issuer:
   Smith International, Inc.   Smith International, Inc.
 
        
Issue:
   8.625% Senior Notes due 2014   9.750% Senior Notes due 2019
 
        
Expected Ratings:
   Baa1/BBB+ (Moody's/S&P)   Baa1/BBB+ (Moody's/S&P)
 
        
Ranking:
   Senior Unsecured   Senior Unsecured
 
        
Principal Amount:
   $300,000,000   $700,000,000
 
        
Pricing Date:
   March 16, 2009   March 16, 2009
 
        
Settlement Date:
   March 19, 2009 (T+3)   March 19, 2009 (T+3)
 
        
Maturity Date:
   March 15, 2014   March 15, 2019
 
        
Interest Payment
   March 15 and September 15, of   March 15 and September 15, of
Dates:
   each year, commencing   each year, commencing
 
   September 15, 2009   September 15, 2009
 
        
Benchmark Treasury:
   1.875% due February 28, 2014   2.750% due February 15, 2019
 
        
UST Spot (Px/Yield):
   99-27 / 1.908%   98-7 / 2.958%
 
        
Spread to Benchmark:
   680 basis points   680 basis points
 
        
Yield to Maturity:
   8.708%   9.758%
 
        
Coupon:
   8.625%   9.750%
 
        
Price to Public:
   99.672%   99.952%
 
        
Price to Underwriters:
   99.072%   99.302%
 
        
Net Proceeds to
   $297,216,000   $695,114,000
Issuer, after fees:
        
 
        
Daycount:
   30/360   30/360
 
        
Minimum
   $2,000 and integral multiples of   $2,000 and integral multiples of
Denomination:
   $1,000 in excess thereof   $1,000 in excess thereof
 
        
Make-Whole
   At any time at the Treasury Rate   At any time at the Treasury Rate
Redemption:
   plus 50 basis points   plus 50 basis points
 
        
CUSIP:
   832110AK6   832110AL4

 

 

         
 
        
Lead Managers:
   J.P. Morgan Securities Inc.   J.P. Morgan Securities Inc.
 
   Calyon Securities (USA) Inc.   Calyon Securities (USA) Inc.
 
   Banc of America Securities LLC   Banc of America Securities LLC
 
   Wachovia Capital Markets, LLC   Wachovia Capital Markets, LLC
 
        
Co-Managers:
   DnB NOR Markets, Inc.   DnB NOR Markets, Inc.
 
   Fortis Securities LLC   Fortis Securities LLC
Note: A securities rating is not a recommendation to buy, sell or hold securities and may be subject to revision or withdrawal at any time. The Company has filed a registration statement (including a prospectus) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement and other documents the Company has filed with the SEC for more complete information about the Issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC website at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling J.P. Morgan Securities Inc. collect at (212) 834-4533, Calyon Securities (USA) Inc. at (212) 261-7930 or Banc of America Securities LLC toll-free at (800) 294-1322.
Any disclaimers or other notices that may appear below are not applicable to this communication and should be disregarded. Such disclaimers were automatically generated as a result of this communication being sent via email or another communication system.