Willbros amends loan, waiving, adding covenants, changing rates

By Sara Rosenberg

New York, Nov. 30 - Willbros Group Inc. amended its credit facility, waiving certain financial covenants and reporting obligations, adding new financing covenants and changing interest rates, according to an 8-K filed with the Securities and Exchange Commission Wednesday.

In addition, the company announced that it plans to negotiate a new credit facility in the first quarter of 2006 to replace its existing facility that is scheduled to mature on March 12, 2007.

Under the amendment, compliance with the consolidated tangible net worth covenant as of Sept. 30 and earlier quarters was permanently waived, and compliance with the minimum cash balance requirement and the fixed-charge coverage ratio were waived for the quarters ending Sept. 30, Dec. 31 and March 31, 2006.

Interest rates on the loan were changed to Libor plus 500 basis points with a 75 bps commitment fee.

And, new financial covenants were added, requiring the company to maintain designated minimum levels of adjusted EBITDA for each monthly period beginning October 2005 and ending May 2006, and a consolidated ratio of current assets to current liabilities of not less than 1.00 to 1.00 for the fiscal quarters ending Dec. 31 and March 31, 2006.

With the completion of this amendment, the company's $100 million credit facility - $30 million available for cash, $70 million available for letters of credit - was reactivated.

The amendment was done on Nov. 23.

Calyon is the administrative agent on the deal.

Willbros Group is a Panama-based independent contractor serving the oil, gas and power industries.

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