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BofA, JPMorgan, Others Provide $90MM ABL Credt Facility to Newpark Resources

May 13, 2016, 07:56 AM
Filed Under: Energy Services

Newpark Resources, Inc. has entered into a new credit agreement, which provides for a $90 million asset-based revolving credit facility ("ABL Facility").  The ABL Facility replaces the existing $150 million credit facility, which has been terminated.  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 our outstanding $161 million in Convertible Senior Notes, maturing in October 2017.  The ABL Facility also includes an accordion feature, allowing for the expansion up to a maximum of $150 million.  The bank group participating in the ABL Facility includes Bank of America, JPMorgan, First Tennessee Bank, and Credit Suisse.

Gregg Piontek, Newpark's Vice President and Chief Financial Officer, stated, "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, Inc. is a worldwide provider of value-added drilling fluids systems and composite matting systems used in oilfield and other commercial markets. 

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