THE WOODLANDS, Texas, July 21 /PRNewswire-FirstCall/ -- Newpark Resources, Inc. (NYSE: NR) announced today that it has entered into a First Amendment and Waiver to Amended and Restated Credit Agreement ("First Amendment"), amending provisions of its existing Amended and Restated Credit Agreement. The First Amendment was principally entered into as a result of the Company's non-compliance with the consolidated fixed charge coverage ratio and consolidated leverage ratio financial covenants under its existing credit agreement as of June 30, 2009. The First Amendment provides a waiver of the financial covenant violations by the Company's lenders, modifies certain financial covenant requirements in future periods and amends certain provisions of the existing credit agreement.

Pursuant to the First Amendment, favorable adjustments were made to the consolidated fixed charge coverage ratio covenant through June 2010 and the consolidated leverage ratio covenant through March 2010. In addition, the method of calculating these two ratios was modified to utilize annualized results beginning with the Company's third quarter of 2009 and ending with the first quarter of 2010. Thereafter, the calculations will be made using the trailing four fiscal quarter results, as set forth in the original credit agreement. The First Amendment increases the interest cost of borrowings to reflect current market conditions, including an increase in the margin on LIBOR based borrowings, which constitutes a substantial portion of the Company's borrowings, from a range of 150 to 250 basis points to a range of 400 to 750 basis points, depending upon the Company's consolidated leverage ratio. The margin will initially be 750 basis points. The First Amendment also reduces the revolving credit facility from $175 million to $150 million. The amount outstanding under the revolving credit facility at June 30, 2009 was $100.6 million, including letters of credit of $3.6 million.

Paul Howes, President and Chief Executive Officer of Newpark, stated, "We are pleased to be able to execute this amendment with our lenders as we continue to manage through this severe downturn in drilling activity in North America. We believe that this amendment provides us with the opportunity to continue to position Newpark for further growth in our international businesses and a recovery in our North American business."

Newpark Resources, Inc. is a worldwide provider of drilling fluids, temporary worksites and access roads for oilfield and other commercial markets, and environmental waste treatment solutions.