Business Context and Reporting Period
Company: Optical Cable Corporation
Filing Type: Form 8-K (Current Report)
Date of Report: August 31, 2012
Event: Entry into a Material Definitive Agreement (Fifth Loan Modification Agreement) with Valley Bank.
Key Financial Metrics
This filing does not report revenue, profit, cash flow, margins, or liquidity metrics. It focuses exclusively on debt restructuring terms.
| Debt Instrument | Previous Interest Rate | New Interest Rate | Collateral |
|---|---|---|---|
| Term Loan A & Term Loan B | 5.85% | 4.25% | Land and buildings at Roanoke, VA and Asheville, NC facilities |
Material Changes
- Interest Rate Reduction: The fixed interest rate on Term Loan A and Term Loan B was lowered from 5.85% to 4.25%.
- Repayment Terms: Applicable repayment installments were revised under the new agreement.
- Agreement Date: The modification was executed on August 31, 2012, modifying the original Credit Agreement dated May 30, 2008.
Guidance, Outlook, and Risks
The filing contains no forward-looking guidance, management commentary on future performance, or specific risk factors beyond the standard disclosure of the loan modification. The primary purpose stated is the revision of interest rates and repayment installments.
Investor Verification Checklist
- Verify the total principal balance of Term Loan A and Term Loan B to calculate the annual interest savings resulting from the 1.60% rate reduction.
- Review the attached Exhibit 4.1 (Fifth Loan Modification Agreement) for specific details on the revised repayment installment schedule.
- Confirm the current status of the collateral (Roanoke, VA and Asheville, NC facilities) to ensure no liens or encumbrances have changed.