Item 1.02. Termination of a Material Definitive Agreement
On June 30, 2021, First Solar, Inc. (the "Company") terminated its Second
Amended and Restated Credit Agreement (the "Revolving Credit Facility") with
several financial institutions as lenders and JPMorgan Chase Bank, N.A. as
administrative agent, which was set to mature in July 2022.
The secured Revolving Credit Facility provided the Company with an aggregate
borrowing capacity of $500.0 million. Subject to certain conditions, the Company
had the right to increase the aggregate commitments under the Revolving Credit
Facility to $750.0 million. Borrowings under the Revolving Credit Facility bore
interest at (i) London Interbank Offered Rate, adjusted for Eurocurrency reserve
requirements, plus a margin of 2.00% or (ii) a base rate as defined in the
credit agreement plus a margin of 1.00% depending on the type of borrowing
requested.
In addition to paying interest on outstanding principal under the Revolving
Credit Facility, the Company paid a commitment fee at a rate of 0.30% per annum,
based on the average daily unused commitments under the facility. The Company
also paid a letter of credit fee based on the applicable margin for Eurocurrency
revolving loans on the face amount of each letter of credit and a fronting fee
of 0.125%.
As of June 30, 2021, the Company had no borrowings under the Revolving Credit
Facility and had $3.3 million in issued and outstanding letters of credits,
which were moved to a bilateral facility upon termination of the Revolving
Credit Facility.
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