Business Context and Reporting Period
Company: Optical Cable Corporation
Filing Type: Form 8-K (Current Report)
Date of Report: April 22, 2011
Event: Entry into a Material Definitive Agreement (Third 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 | Previous Maturity | New Maturity |
|---|---|---|---|---|
| Term Loan A & Term Loan B | 6.0% | 5.85% | June 2013 | April 2018 |
Collateral: Land and buildings at headquarters/manufacturing facilities in Roanoke, Virginia, and manufacturing/office facilities near Asheville, North Carolina.
Material Changes
- Interest Rate Reduction: Fixed rates on Term Loans A and B were lowered by 0.15% (from 6.0% to 5.85%).
- Maturity Extension: The maturity date for both loans was extended by approximately five years (from June 2013 to April 2018).
- Repayment Terms: Applicable repayment installments were revised, though specific installment amounts are not detailed in this summary.
Outlook, Risks, and Management Commentary
The primary purpose of the agreement was to revise interest rates and extend the maturity of existing term loans. The filing incorporates a press release (Exhibit 99.1) and the full agreement (Exhibit 10.1) by reference. No specific forward-looking guidance, risk factors, or unusual items are detailed within the text of this 8-K summary.
Investor Verification Checklist
- Verify the specific revised repayment installment schedule in Exhibit 10.1.
- Confirm the total outstanding principal balance of Term Loans A and B to assess the impact of the rate reduction.
- Review the full Press Release (Exhibit 99.1) for additional management commentary on liquidity or operational strategy.
- Check subsequent filings for any covenants or conditions attached to the loan extension.