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EXHIBIT 99.1
NEWPARK RESOURCES COMPLETES $30 MILLION PRIVATE PLACEMENT
Metairie, LA, June 1, 2000...Newpark Resources, Inc. (NYSE: NR) today announced
that it has completed the private placement of $30 million of a newly designated
class of Preferred Stock and warrants for 1.9 million shares of Common Stock.
The securities were issued to Fletcher International Limited, an affiliate of
Fletcher Asset Management, Inc., an investment firm headquartered in New York
City with over $600 million under management.
The preferred shares carry a 4.5% dividend payable at the Company's option in
cash or common stock and are convertible into common stock at market prices at
any time, subject to certain restrictions. The warrants are exercisable at any
time during a seven-year term at $10.08, a 30% premium to the market price of
the stock on May 26, 2000.
James D. Cole, Newpark's President and CEO stated: "Current natural gas prices,
the trend in rig activity, and possible changes in environmental regulations
suggest that the coming market opportunity may be considerably stronger than we
had anticipated. We believe that the immediate improvement in balance sheet
liquidity and the added working capital provided by this financing will help
position us to take full advantage of the market opportunity."
He continued, "Over the past year, we've witnessed a near-doubling in the price
of natural gas. This puts billions of dollars of additional cash flow into the
industry, which can reasonably be expected to dedicate a portion of that
increment to increased exploration activity. We have also become aware that
there is likely to be a significant tightening of discharge regulations in the
Gulf of Mexico later this year. While we cannot be certain of the impact of the
revised regulations, the changes could benefit either or both of the Company's
oilfield waste disposal business and its drilling fluids business. Newpark has
developed and maintained the disposal capacity necessary to handle the increased
waste volumes expected to result from the progression of tighter discharge
regulations. The Company has also positioned itself as a supplier of
high-performance, environmentally friendly drilling fluids, demand for which
could increase if the higher compliance standards become effective.
"This transaction is also a prudent step financially, reducing our
debt-to-capital ratio to 46% from 53% at the end of the first quarter," Cole
said, adding, "We anticipate a further improvement in our debt ratio by year-end
from operating earnings. Because the proceeds of the transaction will initially
be used to pay down bank borrowings, the transaction is not anticipated to be
dilutive to earnings."
Newpark Resources, Inc. provides integrated fluids management, environmental and
oilfield services to the exploration and production industry. Fletcher
International Limited is a private fund affiliated with Fletcher Asset
Management, Inc. Fletcher makes direct investments in a wide range of
established and growing public companies in a variety of industries.
For further information about the Company, contact:
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Company New York
Matthew W. Hardey Ron Hengen
Vice President of Finance R. F. Hengen, Inc.
Newpark Resources, Inc. 253 Southgate Road
3850 N. Causeway, Suite 1770 Murray Hill, New Jersey 07974
Metairie, Louisiana 70002 (908) 508-9000
(504) 838-8222
For further information about Fletcher Asset Management, contact:
Fletcher Asset Management
Jonathan B. Schindel
Executive Vice President
22 East 67th Street
New York, NY 10021
(212) 284-4800
email: [email protected]
The foregoing discussion contains 'forward-looking statements' within the
meaning of Section 27A of the Securities Act of 1933, as amended, and Section
21E of the Securities Act of 1934, as amended. There are risks and uncertainties
that could cause future events and results to differ materially from those
anticipated by management in the forward-looking statements included in this
press release. For further information regarding these and other factors, risks
and uncertainties affecting the Company, reference is made to the section
entitled "Forward-Looking Statements," on page 45 of the Annual Report on Form
10-K dated March 27, 2000, (SEC File No. 1-2960). You are strongly urged to
review these filings for a more detailed discussion of these risks and
uncertainties. Newpark's SEC filings can be obtained at no charge at www.sec.gov
and at www.freeEDGAR.com, as well as through our Website, www.newpark.com.
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