A leading infrastructure and construction materials firm says it has achieved covenants relating to a senior debt facility and has updated its second quarter debt finance earnings guidance.
Armtec Infrastructure Inc. says that as of June 30 this year, it had achieved the purposes of the ‘Brookfield’ covenants, including a Senior Debt to EBITDA covenant which required a ratio of less than five times Senior Debt to Earnings Before Interest and Tax (EBIT).
The debt covenant relates to a funding agreement the company entered into in July of last year with financing firm Brookfield Asset Management, under which Brookfield provided Armtec with a two-year extendable $125 million credit facility.
The agreement had been entered into at a difficult time for the company, which last year was forced to book an operating loss of $287 million after a re-valuation of the carrying value of its assets, as required under international accounting rules, resulted in a $269.6 million impairment charge.
In response to that, the company launched a turnaround plan aimed at improving efficiency and reducing costs.
In an update last month, the company indicated it expected to achieve the terms of the debt covenant.
The company also expects second quarter net earnings of $1.5 million, compared with a loss of $135.7 million in the same quarter last year.
Armtec says it expects to announce its second quarter earnings on August 9.