Willbros said it will pursue a refinancing of its outstanding term loan and revolving credit facilities. The company expects the refinancing to enable it to borrow new funds at a lower interest rate, to extend the maturity of its debt to 2018 and to increase its flexibility under its loan covenants.

The company is seeking to arrange a $250 million, six-year senior secured term loan credit facility. The company intends to use the net proceeds from the new term loan to repay all indebtedness under the company’s existing credit facilities and for general corporate purposes. In addition to the new term loan, the company expects to enter into a $150 million, five-year asset-based revolving credit facility. The revolver will be unfunded at close.

J.P. Morgan Securities will act as sole lead arranger and bookrunner for the new senior secured term loan. Bank of America will act as sole administrative agent and collateral agent and Merrill Lynch, Pierce, Fenner & Smith as sole lead arranger and sole book manager for the $150 million asset-based revolving credit facility.

The company said it believes it has identified the causes for and has completed the appropriate actions to contain the losses in its regional oil and gas operations; however, it now expects an operating loss from continuing operations on a consolidated basis in the second quarter 2013 to range from $4 million to $7 million. Results from the regional delivery business are expected to improve slightly in the second quarter relative to the $16.2 million operating loss generated by that business in the first quarter of 2013.

The company said it is making solid progress on management and process improvements and believes that the recent changes in the Oil & Gas and Regions’ leadership, improvements made in our estimating process and project management, and the short duration of the underperforming projects in the regional delivery business, which were essentially complete at June 30, 2013, should return the business’ project operations to profitability in the short term. The company continues to exercise patience and discipline with respect to the acquisition of new work in the regions and in its cross-country pipeline construction business where multiple opportunities are still available for execution in 2013. Aside from these two businesses in the Oil & Gas segment, the company’s remaining continuing operations are currently performing to plan and are on track to meet annual revenue and profit expectations. The company continues to expect revenue for the full year 2013 to be in the range of $1.9 billion to $2.1 billion.