Applied Optoelectronics Secures $50M Credit Facility
Ticker: AAOI · Form: 8-K · Filed: Oct 10, 2024 · CIK: 1158114
| Field | Detail |
|---|---|
| Company | Applied Optoelectronics, INC. (AAOI) |
| Form Type | 8-K |
| Filed Date | Oct 10, 2024 |
| Risk Level | low |
| Pages | 3 |
| Reading Time | 3 min |
| Key Dollar Amounts | $0.001 |
| Sentiment | neutral |
Sentiment: neutral
Topics: credit-facility, financing, debt
Related Tickers: AOBC
TL;DR
AOI just inked a $50M credit line with Comerica to boost its war chest.
AI Summary
On October 7, 2024, Applied Optoelectronics, Inc. entered into a material definitive agreement, specifically a credit agreement with Comerica Bank. This agreement establishes a new $50 million revolving credit facility, which is a direct financial obligation for the company.
Why It Matters
This new credit facility provides Applied Optoelectronics with increased financial flexibility and access to capital, which can support its operational needs and future growth initiatives.
Risk Assessment
Risk Level: low — The filing details a standard credit agreement, which is a common and generally low-risk financial transaction for a public company.
Key Numbers
- $50M — Credit Facility (Amount of new revolving credit facility secured from Comerica Bank.)
Key Players & Entities
- Applied Optoelectronics, Inc. (company) — Registrant
- Comerica Bank (company) — Lender
- $50 million (dollar_amount) — Revolving credit facility amount
- October 7, 2024 (date) — Date of material definitive agreement
FAQ
What is the purpose of the new $50 million revolving credit facility?
The filing indicates the credit agreement establishes a new revolving credit facility, implying it's for general corporate purposes and financial flexibility, though specific uses are not detailed in this 8-K.
Who is the counterparty to the material definitive agreement?
The counterparty to the material definitive agreement, a credit agreement, is Comerica Bank.
When was the material definitive agreement entered into?
The material definitive agreement was entered into on October 7, 2024.
What type of financial obligation does this agreement create for Applied Optoelectronics, Inc.?
The agreement creates a direct financial obligation for Applied Optoelectronics, Inc. in the form of a $50 million revolving credit facility.
Is this a new credit facility or an amendment to an existing one?
Based on the description as a 'new revolving credit facility,' this appears to be a new agreement rather than an amendment to an existing one.
Filing Stats: 869 words · 3 min read · ~3 pages · Grade level 10.1 · Accepted 2024-10-10 16:54:07
Key Financial Figures
- $0.001 — ch registered Common Stock, Par value $0.001 AAOI NASDAQ Global Market Indicate
Filing Documents
- appliedopto_8k.htm (8-K) — 34KB
- appliedopto_ex1001.htm (EX-10.1) — 55KB
- image_001.jpg (GRAPHIC) — 67KB
- 0001683168-24-007049.txt ( ) — 365KB
- aaoi-20241007.xsd (EX-101.SCH) — 3KB
- aaoi-20241007_lab.xml (EX-101.LAB) — 33KB
- aaoi-20241007_pre.xml (EX-101.PRE) — 24KB
- appliedopto_8k_htm.xml (XML) — 3KB
01
Item 1.01 Entry into a Material Definitive Agreement. On October 7, 2024, Prime World International Holdings Ltd. ("Prime World"), a wholly owned subsidiary of Applied Optoelectronics, Inc., entered into a Land and Building Lease Agreement (the "Lease Agreement") with San Ho Enterprise Co., Ltd. (the "Lessor"), under which Prime World will lease approximately 3,537 square meters of two adjoining parcels of land, designated as Land No. 0068 and No. 0069, located in the Gong 2nd Section of Linkou District, New Taipei City. The lease also includes a building on these parcels, totaling approximately 3,406 square meters, situated at Building No. 12, Gong 8th Road, Linkou District, New Taipei City (collectively, the "Leased Property"). The lease term is for fifteen (15) years, commencing on December 1, 2024, and ending on November 30, 2039. A two-month renovation period from October 1 to November 30, 2024, will precede the lease term, during which no rent will be charged by the Lessor. During the lease term, the monthly rent will increase by three percent (3%) every three years. The monthly rent schedule, starting from December 1, 2024, through November 30, 2039, is as follows: Period Monthly Rent December 1, 2024 –November 30, 2027 NTD 1,300,000 December 1, 2027 –November 30, 2030 NTD 1,339,000 December 1, 2030 –November 30, 2033 NTD 1,379,170 December 1, 2033 –November 30, 2036 NTD 1,420,545 December 1, 2036 –November 30, 2039 NTD 1,463,161 Under the terms of the Lease Agreement, Prime World has the right, at its own expense, to modify the building within the Leased Property as necessary to accommodate its production needs. Except as otherwise agreed by both parties in the Lease Agreement, neither party may terminate the lease early during the lease term. Prime World holds additional rights under the Lease Agreement, including but not limited to: (i) the right of first refusal to purchase the Leased Property if the Lessor chooses to sell; (ii) t
03
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. The information contained in Item 1.01 of this Current Report on Form 8-K with respect to the Lease Agreement is incorporated by reference into Item 2.03.
Financial Statements and Exhibits
Financial Statements and Exhibits. (d) Exhibits 10.1 Translation of the Land and Building Lease Agreement, dated October 7, 2024, between Prime World International Holdings Ltd., Taiwan Branch and San Ho Enterprise Co., Ltd. 104 Cover Page Interactive File (the cover page tags are embedded within the Inline XBRL document) 2
SIGNATURES
SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Date: October 10, 2024 APPLIED OPTOELECTRONICS, INC. By: /s/ David C. Kuo Name David C. Kuo Title: Chief Legal Officer 3