HOUSTON, March 1, 2016 /PRNewswire/ -- Willbros Group, Inc. (NYSE: WG) and its lender have entered into an amendment of the financial covenants associated with Willbros' Term Loan. These amendments put in place less stringent financial covenants for all of 2016 and the first two quarters of 2017. Willbros elected to seek and has obtained this additional flexibility in its financial covenants given the uncertain general market conditions and the potential impact of sustained low oil and natural gas prices on customer spending. Details of these new covenant levels are provided in a Form 8-K filed by the Company with the SEC. The Company has significantly reduced its debt and operating cost structure over the past 18 months and expects to report that its term loan debt at December 31, 2015 is approximately $95 million, compared to $270 million at year-end 2014.
Michael J. Fournier, President and CEO, commented, "We are pleased to have reached agreement with our lender to get this additional flexibility in our financial covenants. Our assessment of the end markets for our services in 2016 is that we will continue to see intense competition in Canada, and a tempered market for pipeline construction in the United States, as the pace of planned projects slows. We do believe the electric distribution business, including overhead to underground conversion, will provide growth opportunities for our Utility T&D segment in 2016. There remains risk in the volatility of work acquisition due to the headwinds of the current market conditions. With our credit facilities more aligned with this new market reality, and the steps we have already taken to right-size our operations, we intend to focus our energy on business development and project execution."
Willbros is a specialty energy infrastructure contractor serving the oil, gas, and power industries. Our offerings include 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 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 additional waivers or amendments 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; 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; development trends of the oil, gas, and power 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.
Stephen W. Breitigam
VP Investor Relations
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/willbros-amends-credit-facility-covenants-300228919.html
SOURCE Willbros Group, Inc.