Toronto Stock Exchange: ARF; ARF.DB
CONCORD, ON, July 14, 2014 /CNW/ - Armtec Infrastructure Inc. ("Armtec"
or the "Company") (TSX: ARF; ARF.DB) today announced that it has
achieved its Senior Secured Debt to EBITDA covenant (the "Covenant")
under its term facility (the "Term Facility") with Brookfield Capital
Partners Fund III LP ("Brookfield") as at June 30, 2014. Preliminary
estimates indicate the Company met the previously disclosed EBITDA
target for the second quarter of 2014 of approximately $12 million,
with lower than disclosed debt levels.
The Company also announced that it is electing to utilize the provisions
of the previously disclosed Brookfield Term Facility amendment, which
provides a waiver of the Covenant in respect of the periods through
September 30, 2014, and makes available a $7.5 million short-term
credit facility to September 19, 2014 (the "Short-Term Facility").
Armtec is now required to pay to Brookfield a waiver fee of $2 million
and a standby fee of $250,000 for the Short-Term Facility. In
addition, a draw fee of $250,000 will be payable by Armtec should it
use the Short-Term Facility. Armtec will be deferring payment of each
of the waiver fee, standby fee and, if applicable, the draw fee, and
these amounts will be added to the principal of the Term Facility.
These fees, however, will be excluded from future Covenant
"We are pleased that Armtec has achieved the Senior Secured Debt to
EBITDA covenant as at June 30, 2014," said Mark Anderson, President and
Chief Executive Officer of Armtec. "However, we believe that it is
prudent for Armtec to avail itself of the Brookfield amendment as the
Company works to improve its earnings and cash flow that were impacted
in the first half of 2014 by adverse weather conditions, in addition to
ongoing lower demand and competitive issues in certain markets."
About Armtec Infrastructure Inc.
Armtec is a manufacturer and marketer of a comprehensive range of
infrastructure products and engineered construction solutions for
customers in a diverse cross-section of industries that are located in
every region of Canada, as well as in selected markets globally. These
markets include Canada's national and regional public infrastructure
markets and private sector markets in agricultural drainage, commercial
building, residential construction and natural resources. Armtec
operates through a network of offices and production facilities across
the country. Armtec operates in two business units: Drainage Solutions
manufactures and markets corrugated high-density polyethylene pipe,
corrugated steel pipe and other drainage related products including
small bridge structures. Precast Concrete Solutions manufactures and
markets highly engineered precast systems such as parking garages,
bridges, sport venues and building envelopes as well as standard
precast products such as steps, paving stones and utility vaults.
This news release contains "forward-looking" statements within the
meaning of applicable securities legislation (including deferring
payment of various fees), which involve known and unknown risks,
uncertainties and other factors which may cause the actual results or
events to be materially different from any future results or events
expressed or implied by such forward-looking statements.
Forward-looking statements typically contain such words or phrases as
"proposed", "may", "outlook", "objective", "intend", "estimate",
"anticipate", "should", "could", "would", "will", "expect", "believe",
"plan" and other similar terminology suggesting future outcomes or
events. Forward-looking statements reflect current expectations
regarding future results, events, performance and achievements and are
based on information currently available to Armtec's management,
anticipated operating and financial results of Armtec, and current and
anticipated market conditions.
Forward-looking statements involve numerous assumptions and should not
be read as guarantees of future results, events, performance or
achievements. Such statements will not necessarily be accurate
indications of whether or not such future results, events, performance
or achievements will be achieved. You should not unduly rely on
forward-looking statements as a number of factors, many of which are
beyond the control of Armtec, could cause actual results, events,
performance or achievements to differ materially from the results,
events, performance or achievements discussed in the forward-looking
statements, including, but not limited to the factors discussed in
Armtec's materials filed with the Canadian securities regulatory
authorities from time to time. Although the forward-looking statements
contained in this news release are based upon what management of Armtec
believes are reasonable assumptions, Armtec cannot assure investors
that actual results, events, performance or achievements will be
consistent with these forward-looking statements. All forward-looking
statements in this news release are qualified by these cautionary
statements. These forward-looking statements are made as of the date of
this news release and, except as required by applicable law, Armtec
assumes no obligation to update or revise them to reflect new events or
SOURCE: Armtec Infrastructure Inc.
For further information:
Vice President & Corporate
Armtec Infrastructure Inc.
Tel: (647) 795-9290