Armtec Infrastructure announced it achieved its senior secured debt to EBITDA covenant under its term facility with Brookfield Capital Partners Fund III LP. 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.

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 calculations.

“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.”

Armtec is a manufacturer and marketer of infrastructure products and engineered construction solutions.