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.
Michael W. Collier
SVP Investor Relations
Marketing & Communications
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SOURCE Willbros Group, Inc.