Willbros Group and its lenders amended the financial covenants associated in its term loan. KKR Credit Advisors acted as arranger and Cortland Capital Market Services as administrative agent.

These amendments put in place less stringent financial covenants for all of 2016 and the first two quarters of 2017. Willbros elected to seek this additional flexibility in its financial covenants given the uncertain general market conditions and the potential impact of sustained low oil and natural gas prices on customer spending.

The company significantly reduced its debt and operating cost structure over the past 18 months and expects to report that its term loan debt at December 31, 2015 is approximately $95 million, compared to $270 million at year-end 2014.

Michael J. Fournier, president and CEO, commented, “We are pleased to have reached agreement with our lender to get this additional flexibility in our financial covenants. Our assessment of the end markets for our services in 2016 is that we will continue to see intense competition in Canada, and a tempered market for pipeline construction in the United States, as the pace of planned projects slows.

“We do believe the electric distribution business, including overhead to underground conversion, will provide growth opportunities for our Utility T&D segment in 2016. There remains risk in the volatility of work acquisition due to the headwinds of the current market conditions. With our credit facilities more aligned with this new market reality, and the steps we have already taken to right-size our operations, we intend to focus our energy on business development and project execution.”

Details of the transaction are itemized in an 8-K filed with the SEC.

Willbros is a specialty energy infrastructure contractor serving the oil, gas and power industries.