Armtec Infrastructure Inc. Achieves June 30, 2014 Covenant and Elects Short-Term Credit Facility and Covenant Waiver

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 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."

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.

FORWARD-LOOKING STATEMENTS

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 circumstances.

SOURCE: Armtec Infrastructure Inc.

Carrie Boutcher 
Vice President & Corporate 
Secretary 
Armtec Infrastructure Inc. 
Tel:  [phone]