HOUSTON, Dec. 1, 2015 /PRNewswire/ -- Willbros Group, Inc. (NYSE: WG) today announced that it has closed on the sale of its Professional Services segment to TRC Companies in a cash deal valued at $130 million, subject to normal working capital and other adjustments. Willbros received payment at closing, less a balance of $7.5 million to be paid when certain customer consents, expected in the near term, are received. Willbros will apply the majority of the proceeds from the sale to reduce its term loan to less than $100 million. After customary closing costs, the remaining funds from this sale and the October sale of the Bemis subsidiary for $19.2 million, of approximately $43 million, will be used for working capital and other purposes.
John T. McNabb, II, outgoing Chairman and CEO, announced, "The close of this transaction is a milestone in the transformation of Willbros to a lean organization focused on energy infrastructure construction and maintenance. I am confident that we are taking the right actions to return Willbros to prominence in its markets."
Michael J. Fournier, President and incoming Chief Executive Officer, commented, "This transaction enables us to significantly reduce our term loan debt and improves our financial profile. This will allow us to reduce our term loan balance from $270 million at December 31, 2014 to under $100 million at December 31, 2015. I am confident that this transaction will boost customer confidence and enhance the rebuilding of our backlog. We are continuing to make solid progress on our plan to return Willbros to profitability. Our new operating structure, coupled with our much improved balance sheet, will provide opportunity in the markets we serve to produce improved results in 2016."
Willbros is a specialty energy infrastructure contractor serving the oil, gas, refining, petrochemical and power industries. Our offerings include construction, 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; inability to maintain compliance with the New York Stock Exchange continued listing standards; inability to timely collect contractually due receivables; 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 SVP Investor Relations Marketing & Communications Willbros 713-403-8038
SOURCE Willbros Group, Inc.