Business Context and Reporting Period
Company: Optical Cable Corporation
Filing Type: Form 8-K (Current Report)
Date of Report: August 11, 2014
Event: Entry into a Material Definitive Agreement regarding the renewal of a revolving credit facility.
Key Financial Metrics
This filing does not report revenue, profit, cash flow, or margins. It focuses exclusively on debt and liquidity terms related to a specific credit facility.
- Outstanding Debt: $3.0 million under the Commercial Note.
- Credit Facility Limit: Up to $9.0 million, or a calculated borrowing base based on receivables and inventory (whichever is lesser).
- Interest Rate: LIBOR plus 2.2%.
- Repayment Terms: Interest due monthly; principal and fees due at maturity.
Material Changes
The primary material change is the extension of the maturity date for the Company's revolving credit facility with SunTrust Bank.
- Previous Maturity: August 31, 2015.
- New Maturity: August 31, 2016.
- Terms: All other terms of the Commercial Note remain unaltered.
Outlook, Risks, and Management Commentary
The filing contains no forward-looking guidance, management commentary on operations, or discussion of risks beyond the terms of the debt agreement. The renewal indicates the Company's continued need for working capital financing and the Bank's agreement to extend the credit line.
Investor Verification Checklist
- Verify the current LIBOR rate to calculate the effective interest cost on the $3.0 million outstanding balance.
- Review the Company's most recent 10-Q or 10-K to assess the adequacy of receivables and inventory supporting the borrowing base.
- Confirm whether the $3.0 million outstanding balance represents a significant portion of the Company's total liquidity or debt obligations.
- Check for any subsequent filings regarding further amendments to the credit facility or changes in the borrowing base calculation.