Atlas Engineered Products announced it has signed a new credit and banking agreement with TD Canada Trust.
“We are excited with this new financing and credit partnership with TD Canada Trust of up to $11.1 million. With this agreement we replace our current, more restrictive, credit facilities with increased financing options, a group of credit products and a structure that is tailored to our high growth business needs. It replaces the bulk of our current debt, supports our day-to-day banking, while meeting the demands of our future financing needs that will support our growth. The Company has good liquidity, and this agreement positions AEP to continue our M&A activities, as well as allows for our continued focus on plant upgrades, automation, and product expansion,” said AEP CEO and President Dirk Maritz.
The new credit facilities include a $1.56 million uncommitted revolving line of credit (the “LOC”), a $3.74 million reducing term loan (the “Term Loan”), a $4.28 million committed revolving line of credit (the “Revolver”) and a $1.56 million non-revolving equipment leasing line (the “Equipment LOC”).
The LOC will be available to finance the company’s working capital needs, small capital expenditures and for general corporate purposes. Repayment will be on demand and interest will be payable monthly. The Term Loan will be used to refinance existing debt and will be amortized over seven years with monthly payments of principal and interest. The Revolver will be a credit facility available to the company for general corporate purposes and acquisitions as needed. This Revolver has a term of three years which can be extended by agreement of the parties and interest will be payable monthly. The Equipment LOC is a facility available to the company that will be available to finance new assets, upgrading existing assets and/or could be used in combination for equipment in acquisitions. Amounts advanced under the Equipment LOC will be amortized for up to 84 months depending on the class of asset, with principal and interest payable monthly.
AEP is a growth company that is acquiring and operating profitable, well-established operations in Canada's truss and engineered products industry.