HF Foods Group Inc. has secured a lower fixed interest rate on $80 million of its floating rate debt with J.P. Morgan Chase, potentially reducing the company’s anticipated interest expense in the coming years. On June 24, 2020, HF Foods Group entered into an interest rate swap (‘IRS’) contract for the notional amount of $80 million with its current lender, J.P. Morgan Chase. Under the terms of the agreement, $80 million of the company’s floating rate loan portfolio will now be fixed at an interest rate of 0.413% plus the agreed spread from June 30, 2021 to June 30, 2025. The company’s existing term loan of approximately $74.3 million was pegged to a floating rate of 1-month LIBOR (London Interbank Offering Rate) + 1.875% per annum, whereas the revolving line of credit was pegged to 1-month LIBOR + 1.375% per annum. The IRS contract effectively locks in the Company’s future interest expense at 2.288% per annum for the Company’s outstanding term loan and 1.788% per annum for a portion of the revolving line of credit up to an aggregate amount of $80 million during the contract period, mitigating the potential risk of rising interest rates from June 30, 2021 to June 30, 2025.