Business Context and Reporting Period
Company: Optical Cable Corporation
Filing Type: Form 8-K (Current Report)
Date of Report: October 26, 2007
Event: Entry into a Material Definitive Agreement (Amendment to Commercial Loan Agreement)
Key Financial Metrics
This filing does not report revenue, profit, cash flow, or operating margins. It specifically addresses debt capacity and terms:
- Loan Facility: Real Estate Loan with Valley Bank.
- Maximum Borrowing Capacity: $6.5 million.
- Outstanding Balance (as of Oct 26, 2007): $0.
- Interest Rate: Fixed at 7.50%.
- Collateral: First deed of trust on Company real property.
- Amortization: Principal and interest calculated based on a 25-year schedule.
Material Changes Versus Prior Period
The Company amended its existing Commercial Loan Agreement. The primary material change is the extension of the draw period:
- Previous Draw Period: Not specified in text.
- New Draw Period End Date: February 28, 2009.
- Maturity Date: Unpaid balance due October 1, 2011.
- Other Terms: All other material terms remain unchanged.
Guidance, Outlook, and Risks
Management Commentary: The filing confirms no material relationships exist between the Company/affiliates and Valley Bank regarding this loan.
Risks/Contingencies: The filing does not disclose specific risks beyond the standard obligations of the loan agreement (monthly principal and interest payments).
Unusual Items: None reported.
Investor Verification Checklist
- Verify the Company's current cash position to assess the likelihood of utilizing the $6.5 million draw capacity before the February 28, 2009 deadline.
- Confirm the specific real property pledged as collateral under the first deed of trust.
- Review the Company's most recent 10-Q or 10-K to understand the impact of the 7.50% fixed interest rate on future interest expense if the facility is drawn.
- Check for any subsequent filings regarding the actual drawdown of funds under this amended agreement.