NANAIMO,
BC, Jan. 11, 2024 /CNW/ - Atlas
Engineered Products ("AEP" or the "Company") (TSXV: AEP) (OTC
Markets: APEUF) announced today 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.
About Atlas Engineered Products
Ltd.
AEP is a growth company that is acquiring and operating
profitable, well-established operations in Canada's truss and engineered products
industry. We have a well-defined and disciplined acquisition and
operating growth strategy enabling us to scale aggressively and
apply new technologies, giving us a unique opportunity to
consolidate a fragmented industry of independent operators.
FORWARD LOOKING
INFORMATION
Information set forth in this news release contains
forward-looking statements. These statements reflect management's
current estimates, beliefs, intentions and expectations; they are
not guarantees of future performance. Although AEP believes that
the expectations reflected in the forward looking statements are
reasonable, there is no assurance that such expectations will prove
to be correct, or that such future events will occur in the
disclosed time frames or at all. AEP cautions that all
forward looking statements are inherently uncertain and that actual
performance may be affected by a number of material factors, many
of which are beyond AEP's control. Such factors include,
among other things: Risks and uncertainties relating to AEP,
including those to be described in the Management's Discussion and
Analysis ("MD&A") for AEP's three and nine months ended
September 30, 2023.
Accordingly, actual and future events, conditions and results may
differ materially from the estimates, beliefs, intentions and
expectations expressed or implied in the forward-looking
information. Except as required under applicable securities
legislation, AEP undertakes no obligation to publicly update or
revise forward-looking information.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES
PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX
VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR
ACCURACY OF THIS RELEASE.
SOURCE Atlas Engineered Products Ltd.