Stock in Armtec Infrastructure Inc. soared close to 20 per cent on Monday, the first trading day after announcing significant changes to its credit facilities.
Armtec shares were up 66 cents, or 19.19 per cent, at $4.10 in midday trading on the Toronto Stock Exchange.
On Sunday, the Guelph-based supplier of water and drainage pipes and pre-cast concrete products, said it had entered into a committed financing with Brookfield Asset Management Inc. providing for a $125-million credit facility.
"The new facility will allow Armtec to repay in full the lenders under its existing senior facility ... and will be available for general corporate purposes," the company said in a statement.
The new credit facility will have a term of two years - extendable to 30 months at Armtec's option - can be prepaid at any time and will be secured by a first charge on Armtec's assets.
Armtec has granted Brookfield a warrant to acquire approximately 4.56 million common shares of the company representing about 15 per cent of its shares on a fully diluted basis. The exercise price has 25 per cent premium to the current market price.
"We are very pleased to have entered into a new relationship with a strong financial partner like Brookfield," said president and CEO Chuck Phillips.
Peter Gordon, managing partner or Brookfield Asset, said the commitment to Armtec was "a reflection of our belief in Armtec's business and operations."
"We look forward to working with Armtec and contributing to its future success," he said.
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