Newpark Resources amended and extended its outstanding credit agreement, increasing its asset-based revolving loan from $150 million to $200 million and reducing applicable borrowing rates.
The bank group participating in the facility included Bank of America, JPMorgan Chase Bank, First Tennessee Bank, Credit Suisse, and Texas Capital Bank.
Under the terms of the amendment, the ABL facility was extended through March 2024, conditioned upon the satisfactory settlement of the company’s outstanding $100 million of 4.0% convertible senior notes that mature in December 2021. The amendment also included an accordion feature, which if certain conditions are met, allows for the potential expansion of the facility up to a maximum of $275 million.
Gregg Piontek, Newpark senior vice president and chief financial officer, stated, “We are very pleased to have the support of our bank group with this credit facility amendment. By expanding the size of the ABL Facility and extending the term to 2024, while also improving the pricing and relaxing certain covenants, the Amendment provides us with greater flexibility to execute on our growth strategy and maximize long-term value for our stockholders.”
Newpark Resources is a worldwide provider of value-added fluids and chemistry solutions in the oilfield, and engineered worksite and access solutions used in various commercial markets.
