Benzinga | Dec 1, 2021 04:25PM EST

Newpark Resources Announces Repayment Of Convertible Bonds, Acquisition Of Access Solutions Business For ~$14M

Newpark Resources, Inc. (NYSE:NR) ("Newpark" or the "Company") today announced the repayment of $39 million of outstanding convertible notes at maturity. In addition, consistent with its stated focus on expansion within industrial end-markets, the Company has entered into an agreement to acquire substantially all assets and operations of Lentzcaping, Inc. ("Lentzcaping") for cash consideration of approximately $14 million.

Lentzcaping has been a valued partner for Newpark in recent years, primarily serving utility transmission customers in the Northeast U.S. and providing a variety of complementary services including worksite planning and preparation, temporary access, and worksite restoration. The transaction is expected to close in December 2021, subject to customary closing conditions.

Paul Howes, Newpark's Chief Executive Officer, stated, "As we've navigated the unprecedented market conditions of 2020 and 2021, managing our liquidity to protect shareholders and ensure our ability to fund our convertible bond maturity remained our highest priority. Today's repayment now paves the way to continue our work with J.P. Morgan and other advisors to explore additional near-term and long-term opportunities to reshape our business and portfolio, while enhancing the value derived from our leading Fluids Systems and Industrial Solutions businesses."

Howes added, "Our Board of Directors and management team's full focus is on taking the right strategic steps at the right time, in order to position our company for the long-term, while creating value for our shareholders. While we have made meaningful strides in addressing the structural changes in some of our served markets, we are committed to taking additional steps to generate more stable cash flows and improve our returns on invested capital. As we look to the future, we will continue to work closely with our advisors to evaluate all aspects of our business and portfolio, and we welcome constructive input from our shareholders throughout this process."