Willbros Group Inc. (NYSE: WG) has 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 of 2016 that 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 Willbros to proceed with its 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 that it may market in future periods. Net proceeds will be used primarily for debt reduction and secondarily for working capital.