Business Context and Reporting Period
This Form 8-K Current Report was filed by Applied Optoelectronics, Inc. on April 11, 2019. The report details a material definitive agreement entered into by Prime World International Holdings Ltd., a wholly owned subsidiary of the registrant.
Key Financial Metrics and Debt
The filing discloses the establishment of a new credit facility rather than reporting periodic financial performance metrics such as revenue, profit, or cash flow.
- Credit Facility Amount: NT$80 million.
- Purpose: Short-term working capital.
- Term: One year (April 11, 2019 to April 11, 2020).
- Draw Term: Up to 180 days per draw.
- Interest Rates (at execution):
- New Taiwan Dollars: Bank's one-year fixed term time deposit rate (1.045%) + 0.655%.
- Foreign Currency: TAIFX3 rate (2.75%) + 0.7%.
- Repayment: Monthly interest payments for short-term loans; principal and interest due at maturity.
- Security: Secured by a Promissory Note.
Material Changes
The filing does not provide comparative financial data or material changes to prior periods. The primary material event is the creation of a new direct financial obligation via the credit facility with Far Eastern International Bank Co., Ltd.
Outlook, Risks, and Contingencies
The filing does not contain management commentary, forward-looking guidance, or specific risk factors beyond the standard representations and warranties and events of default customary for credit agreements of this type. The agreement is secured, and the subsidiary is obligated to make interest payments monthly or at maturity depending on the loan type.
Investor Verification Checklist
- Verify the total outstanding debt load of Prime World International Holdings Ltd. to assess leverage.
- Confirm the current utilization rate of the NT$80 million facility.
- Review the full text of the attached exhibits (10.1 through 10.4) for specific covenants and events of default.
- Monitor the subsidiary's ability to service monthly interest payments given the stated rates.