Business Context and Reporting Period
Company: Optical Cable Corporation
Filing Type: Form 8-K (Current Report)
Date of Report: April 27, 2017
Event: Entry into a Material Definitive Agreement (Third Loan Modification Agreement) with Bank of North Carolina.
Key Financial Metrics
This filing does not report revenue, profit, cash flow, margins, or liquidity metrics. It focuses exclusively on debt restructuring terms.
| Metric | Details |
|---|---|
| Debt Instrument | Term Loan A and Term Loan B (originally dated April 26, 2016) |
| Revised Interest Rate | 3.95% (increased from 3.75%) |
| Revised Maturity Date | May 2024 (extended from original term) |
| Collateral | Land and buildings at Roanoke, VA and Asheville, NC facilities; personal property and assets. |
Material Changes
- Interest Rate Adjustment: The fixed interest rate for both Term Loan A and Term Loan B was increased by 20 basis points, from 3.75% to 3.95%.
- Maturity Extension: The maturity date for both loans was extended to May 2024.
- Repayment Terms: Applicable repayment installments were revised (specific amounts not disclosed in this text).
- Unchanged Terms: All other terms of the original Credit Agreement and Notes remain unaltered.
Guidance, Outlook, and Risks
Management Commentary: The primary purpose of the agreement was to revise interest rates, repayment installments, and extend the maturity date of the existing term loans.
Risks and Contingencies: The filing does not explicitly list new risks or contingencies. The loans remain secured by the Company's real estate and personal property assets.
Guidance: No forward-looking financial guidance or outlook is provided in this filing.
Investor Verification Checklist
- Verify the total principal balance of Term Loan A and Term Loan B to assess the impact of the 20 basis point rate increase on annual interest expense.
- Review the specific revised repayment installment schedule to understand cash flow implications.
- Confirm the status of the collateral (Roanoke and Asheville facilities) to ensure no liens or encumbrances have changed outside of this agreement.
- Check subsequent filings for any covenant waivers or additional modifications related to the Credit Agreement.