Blue Bird Corporation BLBD, -0.60%the leading independent designer and manufacturer of school buses, announced today that it will be paying down its $226 million term debt by $25 million, or 11%. Blue Bird Corporation has paid down $34 million this fiscal year-to-date, including the required amortization payments made under the loan agreement.

“Generating strong free cash flow is a fundamental priority at Blue Bird and being able to voluntarily pay down a substantial portion of our debt is an example of the optionality this provides. We believe this is a prudent decision as we manage our balance sheet for our ongoing business and position the company for future growth,” said Phil Tighe, Chief Financial Officer of Blue Bird Corporation.