Newpark Resources entered into a new $90 million ABL facility, replacing its existing $150 million credit facility, which has been terminated. Bank of America, JPMorgan Chase, First Tennessee Bank and Credit Suisse are part of the bank syndicate providing the facility.

Borrowing availability under the ABL Facility is based on eligible receivables, inventory, and beginning in January 2017, composite mats in the rental fleet. The term of this new facility runs through March of 2020, subject to satisfactory settlement of outstanding $161 million in convertible senior notes, maturing in October 2017. The ABL includes an accordion feature, allowing for the expansion up to a maximum of $150 million.
Gregg Piontek, Newpark’s vice president and CFO, said, “We are pleased to have the support of the bank group, particularly in this challenging time for our industry. The transition to an asset-based lending structure provides us with a greater level of assured access to additional liquidity through the cycle, while also strengthening our position to manage the 2017 maturity of our senior notes.”

Newpark Resources is a worldwide provider of drilling fluids systems and composite matting systems used in oilfield and other commercial markets.