Business Context and Reporting Period
Applied Optoelectronics, Inc. filed this Form 8-K on December 11, 2013, to report the execution of a material definitive agreement. The company is incorporated in Delaware and maintains its principal executive offices in Sugar Land, Texas.
Key Financial Metrics
This filing does not report revenue, profit, cash flow, margins, or specific debt balances. The document focuses exclusively on the terms of a credit facility amendment.
Material Changes
On December 11, 2013, the Company executed the Twelfth Amendment to its Amended and Restated Loan and Security Agreement with East West Bank. Key changes include:
- Maturity Extension: The revolving line maturity date was extended to November 15, 2015.
- New Features: The agreement now permits the issuance of standby letters of credit under the revolving line.
- Interest Rate Reduction: Interest rates were reduced by 0.5% for revolving advances and Equipment II Advances, with potential for further reductions under certain circumstances.
Guidance, Outlook, and Risks
The filing contains no forward-looking guidance, management commentary on future performance, or discussion of specific risks beyond the standard qualification that the summary is not a complete statement of rights. The full text of the Amendment is attached as Exhibit 10.1.
Investor Verification Checklist
- Review Exhibit 10.1 for the complete terms of the Twelfth Amendment.
- Verify the specific conditions required to achieve further interest rate reductions beyond the initial 0.5% cut.
- Confirm the impact of the new standby letters of credit on the company's available liquidity.