S&P rates Willbros notes B+

Standard & Poor's said it assigned a B+ issue-level rating and 5 recovery rating to Willbros Group Inc.'s proposed $250 million, senior secured second-lien notes due 2016. The rating is one notch lower than the corporate credit rating and the 5 recovery rating indicates an expectation of 10% to 30% recovery in the event of a default. The agency also said it raised the rating on its proposed $225 million senior secured credit facilities to BB+ from BB- and revised the recovery rating to 1 from 3, which reflects an expectation of 90% to 100% recovery in the event of a default.

A key assumption in the recovery rating revision is the reduction in proposed first-lien debt, S&P said. Willbros will fund its proposed acquisition of InfrastruX Group Inc. with a proposed $50 million term loan due April 2014, $250 million proposed senior secured, second-lien notes due 2016, about $81 million in cash and $120 million in new Willbros equity.

This acquisition is consistent with the company's strategy to diversify its end markets to compliment its upstream oil and gas business, the agency said.

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