Willbros suspends credit agreement financial covenants, amends terms

By Tali Rackner

Norfolk, Va., April 6 – Willbros Group, Inc. entered into a first amendment to its credit agreement on March 31 via administrative agent JPMorgan Chase Bank, NA, according to an 8-K filing with the Securities and Exchange Commission.

Among other things, the amendment suspends compliance with the maximum total leverage ratio and the minimum interest coverage ratio covenants for the periods ending Dec. 31, 2014 through March 31, 2016 and provides that the company’s failure to comply with such covenants during the period will not be deemed to result in a default or event of default under the term credit agreement.

The amendment also increases the basket in the term credit agreement for incurrence of “permitted ABL debt” to $200 million from $150 million, of which no more than $25 million may be incurred at subsidiaries that are not guarantors under the credit agreement.

In addition, the lenders holding more than 50% of the sum of the total principal amount of the loans outstanding under the credit may designate one representative reasonably acceptable to the nominating/corporate governance committee of the board of directors to attend and observe (but not vote) at all board meetings and any committee thereof.

Willbros is a Houston-based specialty energy infrastructure contractor serving the oil, gas, refining, petrochemical and power industries.

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