Atlas Engineered Products announced it has made a debt prepayment of $5 million on its TD Term Credit Facility ("Term Facility"). The Term Facility was part of the amended and restated credit facility agreement with TD Canada Trust entered in to on August 23, 2023. The agreement has four facilities, with the second facility being the Term Facility.

Initially this Term Facility was used to finance the acquisition of Leon Chouinard & Fils Co. Ltd. and refinance previous facilities with TD. This is a committed, non-revolving reducing Term Facility with an original maturity date of August 2033.

Currently, the Term Facility has a floating interest rate of 7.45%. As a result of the debt prepayment, the Company reduced the outstanding principal amount of the Term Facility by $5 million from $28 million to $23 million resulting in an estimated $0.4 million in interest expense savings for the Company's fiscal 2024 year. Excess cash on hand was used to prepay the Term Facility.

It was determined by the Company that this was the best use of cash at this time as the interest expense savings would be sizeable, and the Company would still have access to debt and further cash on hand for potential future organic and acquisitive growth.