Willbros gets consents from 6.5% convertible holders to incur debt in acquisition of InfrastruX

By Susanna Moon

Chicago, March 11 - Willbros Group, Inc. said it received consents for a majority of its 6.5% convertible senior notes due 2012 to amend the notes in connection with its plans to acquire InfrastruX Group, Inc.

The amendments allow Willbros to borrow up to $300 million to finance the cash portion of the purchase price for the acquisition, according to a press release. The company sought to lift the restrictions on its ability to incur debt.

In exchange, Willbros will make a one-time special interest payment of 4% to noteholders five business days after the acquisition closes.

Under the acquisition agreement, stockholders of privately held InfrastruX will receive cash of $360 million and 7.9 million in new Willbros shares. In addition, InfrastruX stockholders will be eligible for contingent earn-out payments of up to $125 million. The deal is expected to close in the second quarter.

InfrastruX is a Seattle-based national provider of electric power and natural gas transmission and distribution infrastructure services. Willbros is a oil, gas and power services company based in Houston.

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