JPMorgan, Others Amend Newpark Facility
Newpark Resources amended its credit agreement, which amends and restates the company’s previous credit agreement and increases the revolving loan facility from $125 million to $200 million, while holding borrowing rates and fee terms consistent with the previous credit facility. The agreement also extends the term of the credit facility through March 2020, conditional upon the satisfactory settlement of our outstanding $172 million in convertible senior notes that mature in October 2017. In the event that convertible senior notes are not satisfied through redemption, conversion, or refinancing, the credit facility term will expire in July 2017. The agreement also includes an accordion feature, allowing for the potential expansion of the revolving facility up to a maximum of $325 million.
The bank group participating in the facility includes JPMorgan, Bank of America, Wells Fargo, Comerica, Bank of Texas, and Credit Suisse.
Gregg Piontek, Newpark’s VP and CFO, stated, “We are pleased to have the support of our bank group with this amendment to our credit facility. By expanding the size of the facility and extending the term, the Credit Agreement provides us greater flexibility to execute our strategy and maximize value for our shareholders.”
Newpark Resources is a worldwide provider of value-added drilling fluids systems and composite matting systems used in oilfield and other commercial markets.