Newpark greenshoe exercise increases 4% convertibles to $100 million

By Angela McDaniels

Tacoma, Wash., Dec. 5 – Newpark Resources Inc. said the underwriters of its 4% five-year convertible senior notes exercised their $12.5 million over-allotment option in full, increasing the size of the issue to $100 million.

As previously reported, the company sold $87.5 million of the non-callable notes at par with an initial conversion premium of 42.5% via a Rule 144A offering on Nov. 30. The issue came downsized from $100 million.

Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC and BofA Merrill Lynch were the joint bookrunners.

Prior to June 1, 2021, the notes are convertible only under certain circumstances.

Upon conversion, the company can settle in cash, shares or a combination.

The company used about $78 million of the net proceeds to retire debt and will use the remaining proceeds for additional debt retirement and general corporate purposes.

Newpark is an oilfield drilling services provider based in the Woodlands, Texas.

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