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Willbros Group begins consent solicitation for 6.5% convertibles
By Angela McDaniels
Tacoma, Wash., Sept. 9 - Willbros Group, Inc. began a consent solicitation for its 6.5% convertible senior notes due 2012, according to an 8-K filing with the Securities and Exchange Commission.
A covenant in the indenture precludes the company from incurring debt, excluding capital lease obligations, insurance premium notes and certain other debt, if that incurrence would cause its maximum total leverage ratio to exceed 4 to 1 and prevents it from borrowing under its June 30, 2010 credit agreement until the ratio is reduced below 4 to 1.
Willbros is soliciting consents to an amendment to the indenture that would increase the maximum consolidated leverage ratio for the quarters ending Sept. 30, Dec. 31 and March 31, 2012 and decrease the maximum ratio below the current 4 to 1 level for the remainder of 2012.
In addition, the proposed amendment would conform the definition of "consolidated EBITDA" in the indenture to the definition of consolidated EBITDA found in the 2010 credit agreement.
Consents are needed from the holders of at least a majority of the outstanding convertibles in order to make the change.
The company said the amendment would allow it to borrow up to the full $25 million of revolving loans otherwise available under the 2010 credit agreement.
The company did not disclose the deadline for submitting consents.
Willbros is a Houston-based provider of engineering, procurement and construction services to the oil and gas, refinery, petrochemical and power industries.
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