HOUSTON, Oct. 2, 2015 /PRNewswire/ -- Willbros Group, Inc.
(NYSE: WG) announced today that it completed amendments to its 2015
term-loan and ABL credit facilities. The amendments establish less
stringent term loan financial covenants beyond the end of the first
quarter 2016, which are designed to address the impact of current
market conditions. Consistent with the Company's expected revenue
levels for 2016, the ABL commitment has been reduced from
$150 million to $100 million, with an accordion feature to expand
up to $175 million to accommodate
future revenue growth.
These amendments also enable the Company to proceed with
previously announced asset sale initiatives, including the sale of
its Professional Services segment, which will allow the Company to
strengthen its balance sheet through debt reduction. The
amended financial covenants are more aligned with current market
conditions and the Company's performance objectives, and the
amendments approve the sale of certain assets, including discrete
assets which it may market in future periods. Net proceeds
will be used primarily for debt reduction and secondarily for
working capital.
The Company has filed an 8-K with the Securities and Exchange
Commission providing additional information relating to these new
amendments.
John T. McNabb, II, Chairman and
Chief Executive Officer, commented, "These new amendments give us
the financial strength and flexibility we need to win the
confidence of customers and investors. With the overall
transformation of Willbros, we are confident that we can achieve
stable, predictable and improved performance in 2016. These amended
facilities position us to qualify financially for the opportunities
before us, and would not have been possible without the confidence
of our lenders and the hard work of our employees. Our next
milestone events will be completion of the sale of our Professional
Services segment and a smaller non-strategic business unit, and we
are confident that we will complete both transactions in the near
term."
Willbros is a specialty energy infrastructure contractor serving
the oil, gas, refining, petrochemical and power industries. Our
offerings include engineering, procurement and construction (either
individually or as an integrated EPC service offering),
maintenance, facilities development and operations services. For
more information on Willbros, please visit our web site at
www.willbros.com.
This announcement contains forward-looking statements.
All statements, other than statements of historical facts, which
address activities, events or developments the Company expects or
anticipates will or may occur in the future, are forward-looking
statements. A number of risks and uncertainties could cause
actual results to differ materially from these statements,
including inability to maintain compliance with the New York Stock
Exchange continued listing standards; inability to complete the
planned sale of the Professional Services segment and other
discrete assets; inability to timely collect contractually due
receivables; unanticipated accounting or other issues regarding any
material weaknesses in internal control over financial reporting;
inability of the Company or its independent auditor to confirm
relevant information or data; unanticipated issues that prevent or
delay the Company's independent auditor from completing its review
of financial statements or that require additional efforts,
procedures or review; the untimely filing of financial statements;
pending and potential investigations and lawsuits; the
identification of one or more issues that require restatement of
one or more other prior period financial statements; ability to
remain in compliance with, or obtain waivers under, the Company's
existing loan agreements; ability to dispose of businesses and
assets in a timely manner at reasonable valuations; the existence
of other material weaknesses in internal control over financial
reporting; contract and billing disputes; new legislation or
regulations detrimental to the economic operation of refining
capacity in the United States;
availability of quality management; availability and terms of
capital; changes in, or the failure to comply with, government
regulations; the promulgation, application, and interpretation of
environmental laws and regulations; future E&P capital
expenditures; oil, gas, gas liquids, and power prices and demand;
the amount and location of planned pipelines; poor refinery crack
spreads; delay of planned refinery outages and upgrades and
development trends of the oil, gas, power, refining and
petrochemical industries; as well as other risk factors described
from time to time in the Company's documents and reports filed with
the SEC. The Company assumes no obligation to update publicly
such forward-looking statements, whether as a result of new
information, future events or otherwise, except as may be required
by law.
CONTACT:
Michael W. Collier
SVP Investor Relations
Marketing & Communications
Willbros
713-403-8038
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/willbros-group-amends-credit-facilities-300153588.html
SOURCE Willbros Group, Inc.