Applied Optoelectronics, Inc. Enter into Loan Security and Guarantee Agreement with CIT Northbridge Credit, LLC
November 21, 2022 at 04:12 pm EST
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On November 16, 2022, Applied Optoelectronics, Inc. (the Company) entered into a Loan Security and Guarantee Agreement (the Credit Facility) with CIT Northbridge Credit, LLC, as agent for secured parties. The Credit Facility provides the Company with a three-year, $27.78 million revolving line of credit. Borrowings under the Credit Facility will be used to repay senior debt with Truist Bank and for working capital needs, capital expenditures, and other corporate purposes. The Company's obligations under the Credit Facility will be secured by substantially all of the Company's domestic tangible and intangible property, including but not limited to the Company's inventory, accounts receivable, instruments, equipment, intellectual property, and all business assets with the exception of real estate and all foreign assets. Borrowings under the Credit Facility will bear interest at a rate equal to the
Secured Overnight Financing Rate (SOFR) plus 3.75%, while monthly average usage is less than 50% of the Credit Facility, otherwise SOFR plus 4.75%.
Applied Optoelectronics, Inc. is a vertically integrated provider of fiber-optic networking products. The Company designs and manufactures a range of optical communications products at varying levels of integration, from components, subassemblies, and modules to complete turn-key equipment. The Company also designs, manufactures, and integrates its own analog and digital lasers using the proprietary Molecular Beam Epitaxy (MBE), and Metal Organic Chemical Vapor Deposition (MOCVD) fabrication process. The Company has manufacturing facilities in Taipei, Taiwan and Ningbo, China. The Company manufactures lasers and laser components and performs research and development activities for laser component and optical module products. The Company offers its fiber-optic networking products, primarily for four networking end-markets, such as cable television, (CATV), Internet data center, telecommunications, (telecom), and fiber-to-the-home (FTTH).
APPLIED OPTOELECTRONICS, INC. 
