Business Context and Reporting Period
This Form 8-K Current Report was filed by Applied Optoelectronics, Inc. on December 22, 2015. The filing discloses the renewal of a material definitive agreement regarding the company's credit facilities.
Key Financial Metrics
The filing details a specific financing arrangement rather than reporting period-end financial performance metrics such as revenue, profit, or cash flow.
- Credit Facility Amount: US$4 million revolving credit facility.
- Lender: Mega International Commercial Bank Co., Ltd. in Taiwan.
- Availability Period: November 28, 2015, to November 27, 2016.
- Term of Draws: Maximum of 180 days per draw.
- Collateral: Secured by the Company's certificate of deposit with the Bank.
- Interest Rates:
- USD: 6-month LIBOR + 1.0%, divided by 0.946.
- New Taiwan Dollar: Bank's base lending rate + 0.76%.
- Other Currencies: Bank's base lending rate + 1.0%, divided by 0.946.
- Current Base Rate: 2.75%.
Material Changes
The Company renewed its existing one-year revolving credit facility originally dated December 20, 2013. The filing does not provide comparative financial data or specific changes to revenue, margins, or debt levels outside of this facility renewal.
Guidance, Outlook, and Risks
Management Commentary: Borrowings under the facility are designated for general corporate purposes. The agreement includes customary representations, warranties, and events of default.
Risks and Contingencies: The filing notes that the Company's obligations are secured by a certificate of deposit. No specific forward-looking guidance or unusual items were disclosed in this report.
Investor Verification Checklist
- Verify the current balance drawn against the US$4 million facility.
- Confirm the status of the certificate of deposit pledged as collateral.
- Review the full text of the Credit Facility Agreement (Exhibit 10.1) for specific covenants and default triggers.
- Monitor the 6-month LIBOR rate to assess current interest expense on USD borrowings.