By Stephanie N. Rotondo
Seattle, Nov. 30 – Newpark Resources Inc. sold a downsized $87.5 million offering of five-year convertible senior notes at par to yield 4% with an initial conversion premium of 42.5% via a Rule144A offering, the company announced on Wednesday.
There is a $12.5 million over-allotment option.
Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC and BofA Merrill Lynch were the joint bookrunners.
The deal was first announced on Monday, with $100 million of the convertibles proposed to be sold, and a $15 million greenshoe. Initial price talk was 3.25% to 3.75%.
The initial conversion rate is 107.1381 shares per each $1,000 of notes, equating to a conversion price of $9.33 per share.
Upon conversion, the company can settle in cash, shares or a combination.
Proceeds will be used to retire existing debt and for general corporate purposes.
The oilfield drilling services provider is based in The Woodlands, Texas.
| Issuer: | Newpark Resources Inc.
|
| Securities: | Convertible senior notes
|
| Amount: | $87.5 million
|
| Greenshoe: | $12.5 million
|
| Maturity: | June 1, 2021
|
| Bookrunners: | Credit Suisse Securities (USA) LLC, J.P. Morgan Securities LLC, BofA Merrill Lynch
|
| Coupon: | 4%
|
| Price: | Par of $1,000
|
| Yield: | 4%
|
| Conversion premium: | 42.5%
|
| Conversion price: | $9.33
|
| Conversion rate: | 107.1381 shares
|
| Contingent conversion: | Yes
|
| Call: | Non-callable
|
| Pricing date: | Nov. 30
|
| Settlement date: | Dec. 5
|
| Price talk: | 3.25% to 3.75% yield
|
| Stock symbol: | NYSE: NR
|
| Stock price: | $6.55 as of Nov. 29 close
|
| Market capitalization: | $601.04 million
|
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