Atlas Engineered Announces Debt Prepayment of $5 Million

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.