Revolvers don't have prepayment penalties - their larger debt might.
The impact of this is tremendous. I believe on the CC they noted their interest rate was around 7.5%. To be conservative let's assume 5%.
Impact on EPS as follows:
27MM x 5% / 4Q = 338K per quarter interest expense savings
338K / 31.9MM o/s shares = .011
By retiring this debt, they just added about a penny in EPS each quarter. And saved about a million in expense for Q2 - Q4.
If interest is 7.5%, increase the EPS/savings to .0153/1.5MM
More telling, this says a lot about the quality of their earnings. IF ZAGG was fraudulent, and their earnings were 'fake', they would not have had the available cash flow to pay down the debt at these levels.
Record sales. Strong cash flow. Reduction of a third of their outstanding debt. Walmart penetration. HZO in the wings. Smartphone / tablet explosive growth. All great signs that the future is bright for this company, despite SA articles alleging fraud.