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Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: Big Dog who wrote (67428)	6/1/2000 9:53:00 AM
From: Big Dog	Read Replies (1) \| Respond to of 95453

NR Press Release Newpark Resources Completes $30 Million Private Placement METAIRIE, La., June 1 /PRNewswire/ -- Newpark Resources, Inc. (NYSE: NR - news) 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.