Newpark resumes, expands program to repurchase convertibles, stock

By Sarah Lizee

Olympia, Wash., Nov. 14 – Newpark Resources, Inc.’s board of directors authorized changes to the company’s securities repurchase program, lifting the authorized repurchase amount to a maximum of $100 million, which can be used for the purchase of outstanding convertible notes or common stock, according to a press release.

The repurchase program was first authorized in 2013. Newpark has repurchased a total of $67 million of its common stock and convertible notes since then, leaving $33.5 million of authorization remaining under the original repurchase program.

The authorization will allow Newpark to resume the repurchase of its outstanding shares or convertible notes in the open market, in block trades or through privately negotiated transactions, subject to some conditions.

The repurchase program has no specific term.

As part of the authorization, the company's management has been authorized to establish trading plans under Rule 10b5-1 of the Securities Exchange Act of 1934.

“With the improvements in operating cash flow generation, as well as our ongoing efforts to repatriate foreign cash, we are continuing to reduce borrowings under our revolving credit facility,” Gregg Piontek, Newpark’s senior vice president and chief financial officer, said.

“This expanded authorization will provide us with additional flexibility to use excess cash to repurchase shares or our convertible notes due in 2021 which we believe will ultimately help optimize our capital structure and enhance shareholder value.”

The Woodlands, Texas-based company operates in three segments: drilling fluids systems and engineering, mats and integrated services and environmental services.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.