SOURCE: Willbros Group, Inc.

November 20, 2007 17:44 ET

Willbros Announces Completion of Transactions: Follow-On Equity Offering; New Credit Facility; InServ Acquisition

HOUSTON, TX--(Marketwire - November 20, 2007) - Willbros Group, Inc. (NYSE: WG) announced today that it has closed a public offering of its common shares at $34.00 per share. The Company sold a total of 7,906,250 shares including shares to cover the full exercise of the over-allotment option. Approximately 37,038,000 shares are outstanding after the offering. UBS Investment Bank and Credit Suisse Securities (USA) LLC were the joint book-running managers for the offering. Calyon Securities (USA) Inc., Bear, Stearns & Co. Inc., D. A. Davidson & Co. and Natixis Bleichroeder Inc. were co-managers. Net proceeds received by the Company, approximately $255.4 million, will be used to fund the cash portion of the acquisition of InServ (approximately $208.9 million including working capital and other closing adjustments), capital expenditures, working capital and additional possible acquisitions of assets and businesses which would complement the Company's capabilities.

Willbros also reported that it has completed the transaction to acquire all the shares of Integrated Service Company LLC ("InServ"), a Tulsa, Oklahoma based company. The Company previously had announced on October 31, 2007 a definitive agreement to acquire InServ.

Willbros also announced that it has entered into a new credit agreement with a bank group led by Calyon for a $150 million three-year senior secured revolving credit facility. The Company may elect to increase the total capacity under the facility to $200 million, with consent from Calyon. The facility, which includes a $50 million component for cash borrowing, will be used primarily for commercial letters of credit to support projects and for general corporate purposes. This facility replaces the Company's existing three-year $100 million synthetic credit facility.

Willbros Group, Inc. is an international contractor serving the energy industries, providing engineering, construction, engineering, procurement and construction ("EPC"), and operations and maintenance services to industry and government entities worldwide.

This announcement contains forward-looking statements. All statements, other than statements of historical facts, which address activities, events or developments the Company expects or anticipates will or may occur in the future, are forward-looking statements. A number of risks and uncertainties could cause actual results to differ materially from these statements, including those discussed above and such things as the possible losses arising from the discontinuation of operations and the sale of the Nigeria assets; failure to finalize the agreements in principle with the Securities and Exchange Commission and the Department of Justice; the potential for additional investigations; the identification of one or more other issues that require restatement of one or more prior period financial statements; availability of quality management; availability and terms of capital; changes in, or the failure to comply with, government regulations; ability to remain in compliance with, or obtain waivers under, the Company's loan agreements and indentures; the promulgation, application, and interpretation of environmental laws and regulations; future E&P capital expenditures; future refining and petrochemical capital and maintenance expenditures; oil, gas, gas liquids, motor fuel and power prices and demand; the amount and location of planned pipelines; the effective tax rates of the different countries where the work is being conducted; development trends of the oil, gas and power industries; changes in the political and economic environment of the countries in which the Company has operations; as well as other risk factors described from time to time in the Company's documents and reports filed with the SEC. The Company assumes no obligation to update publicly such forward-looking statements, whether as a result of new information, future events or otherwise.

Contact Information

    Michael W. Collier
    Vice President
    Investor Relations
    Willbros USA, Inc.
    (713) 403-8016

    Connie Dever
    Strategic Planning
    Willbros USA, Inc.
    (713) 403-8035