Perma-Pipe International, global provider of engineered piping and leak detection solutions for energy, infrastructure and industrial markets, closed a new global credit facility with J.P. Morgan consists of a $75 million revolving credit facility and a $14 million term loan facility, and allows the company access to an additional $50 million in incremental capacity.
The new facility replaces and consolidates multiple existing credit facilities maintained by the company and its subsidiaries across various jurisdictions, creating a more streamlined and centralized financing structure for Perma-Pipe’s global operations. It also provides Perma-Pipe with significantly increased financial capacity, enhanced liquidity and greater flexibility to support working capital requirements, letters of credit, strategic investments and the company’s continued expansion in key markets.
“The closing of this global credit facility marks an important milestone for Perma-Pipe,” Saleh Sagr, president and CEO of Perma-Pipe, said. “By consolidating multiple credit facilities across jurisdictions into a single global financing arrangement, we have enhanced our financial flexibility, simplified our banking structure and strengthened our ability to manage our growing international operations. As we continue to expand across North America, the Middle East and other strategic markets, having a strong, scalable and efficient financial foundation is increasingly important. This facility provides us with the liquidity to support our customers, fund working capital requirements, and pursue attractive growth opportunities. We are very pleased to work with J.P. Morgan as our strategic banking partner and appreciate the confidence they have placed in Perma-Pipe. We look forward to building a strong, long-term relationship with the bank as we continue to execute our global growth strategy.”
Matthew Lewicki, vice president and chief financial officer of Perma-Pipe, added, “This new global credit facility greatly enhances Perma-Pipe’s global treasury and financing structure. By consolidating multiple facilities across several jurisdictions into a single global credit facility, we have simplified our banking arrangements, strengthened liquidity management and increased visibility and flexibility across the organization. The facility also provides substantial capacity to support our working capital requirements and future growth as our backlog, project activity and international operations continue to expand, providing a strong financial foundation for Perma-Pipe’s next phase of growth.”
