Cameron Prices Note Offering

The stock rises.
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, a flow equipment products, systems and services provider to oil, gas and process industries, priced $500 million of 2.50% convertible senior notes due 2026 to be sold to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended.

The Houston-based company also granted the initial purchasers of the notes a 30-day option to purchase up to an additional $75 million aggregate principal amount of the notes.

The company expects sale of the notes to close on May 26. It has the right to redeem these notes anytime on or after June 20, 2011 at the principal amount plus accrued and unpaid interest, and the note holders have the right to require Cameron to repurchase the notes for cash on the June 15, 2011, June 15, 2016 and June 15, 2021 anniversaries of the issue.

Cameron plans to use the net proceeds from this offering to repay at maturity (or, at Cameron's option, at an earlier date) 100% of the company's issued and outstanding $200 million 2.65% senior notes due 2007, to purchase about $200 million of outstanding shares of the company's common stock substantially simultaneously with this offering, and for general corporate purposes, including the purchase of additional shares of the company's common stock.

Shares rose $2.46 Tuesday to $48.11.

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