Armtec Infrastructure Completes Refinancing Initiative
Armtec Infrastructure Inc. reported that its operating subsidiary, Armtec Holdings Limited has completed a refinancing of its senior secured loan facility with Brookfield Asset Management Company.
The new refinancing arrangement comprises a $60 million revolving asset-based loan with Canadian Imperial Bank of Commerce and a $110 million term loan facility with Brookfield Capital Partners Fund III LP.
The facilities were used, in part, to repay all amounts owing under the Existing Facility which were determined to have an economic impact of a February 2013 closing. In addition to the principle the repayment included the accrued interest, the prepayment fee, the exit fee and the financing fee payable. Both facilities are for a 48-month term and will be secured by a charge on Armtec’s assets. At closing, Armtec drew the full amount under the term loan facility and approximately $15 million under the revolving facility. The remaining accessible balance under the revolving facility will be available for general corporate purposes. In connection with the refinancing, the warrant to purchase common shares of Armtec previously issued to Brookfield in connection with the Existing Facility was cancelled for no consideration.
“This refinancing is a significant step forward for Armtec,” said Mark Anderson, president and CEO. “We are grateful for the support Brookfield has shown us through challenging times and are pleased they will continue with CIBC as our lenders. With the refinancing process behind us, we are now in a better position to focus our new business unit teams on operational performance with a goal of improving the overall leverage of the company.”
“We have been impressed with management’s ability to achieve their Turnaround Plan” said David Nowak, SVP with Brookfield Asset Management. “We are excited to be continuing our financial partnership with Armtec and look forward to their future success”.
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.