Armtec Infrastructure Inc. enters into Amending Agreement under Existing Senior Credit Facilities

Toronto Stock Exchange: ARF; ARF.DB

GUELPH, ON, June 30, 2011 /CNW/ - Armtec Infrastructure Inc. ("Armtec" or the "Company") (TSX: ARF; ARF.DB) today announced that it has entered into an amending agreement ("Agreement") with the lenders under its existing senior credit facilities which waives compliance with the Company's financial covenants at June 30, 2011, with the covenants next being measured at July 31, 2011. The Agreement reduces the Company's revolving credit facility from $175 million to $130 million and permits the Company to draw on this facility up to $72 million in the aggregate until July 8, and up to $80 million in the aggregate until July 15, subject to certain additional conditions. These amounts are anticipated to be sufficient to meet the Company's projected needs during this period. Future limits on the amounts to be drawn on the revolving credit facility will be determined by the lenders. The term facility remains unchanged. Armtec continues to work with the lenders to amend the credit facilities so that Armtec remains in compliance with its financial covenants.

ABOUT ARMTEC INFRASTRUCTURE INC.
Armtec is a leading 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. Operating through its network of regional offices and production facilities across the country, Armtec's broad range of engineered solutions include products for drainage, bridge applications, soil retention, rehabilitation and water management systems including corrugated high-density polyethylene, corrugated steel and concrete pipe; an array of architectural and structural precast and pre-stressed concrete products from steps, paving stones, slabs and wall panels to highly engineered structural components designed and installed for projects such as bridges, sports venues and parking garages; and a full suite of noise barriers, acoustic enclosure and wall systems along with associated retaining wall and traffic barrier systems.

FORWARD-LOOKING STATEMENTS
This news release contains "forward-looking" statements within the meaning of applicable securities legislation, including with respect to the determination of future amounts available to be drawn under the revolving credit facility, the sufficiency of the revolving credit facility to meet the Company's projected needs and amending the credit facilities so that Armtec remains in compliance with its financial covenants, which involve known and unknown risks, uncertainties and other factors which may cause the actual results, events, performance or achievements of Armtec or industry results, to be materially different from any future results, events, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements typically contain such words or phrases as "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 circumstances.

SOURCE Armtec Infrastructure Inc.

For further information:

Charles M. Phillips     James R. Newell     Carrie Boutcher
President & Chief Executive Officer     Chief Financial Officer     Vice President, Investor Relations & Treasurer
Armtec Limited Partnership     Armtec Limited Partnership     Armtec Limited Partnership
Tel: (519) 822-0210     Tel: (519) 822-0210     Tel: (519) 822-0210
Fax: (519) 822-8894     Fax: (519) 822-8894     Fax: (519) 822-8894

 

 

Organization Profile

Armtec Infrastructure Inc.

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890