Applied Optoelectronics enters credit agreement with East West Bank

On October 30, 2026, Applied Optoelectronics entered into a credit agreement with the lenders party to it, with East West Bank as administrative agent for the secured parties. The agreement replaces the company's prior credit facility.

The new facility allows the company to request up to $50 million in incremental term loan commitments, pursuant to certain conditions. The company said term loan proceeds may be used to purchase or refinance eligible equipment. The company said revolving borrowings may be used for working capital and general corporate purposes.

The company's obligations are secured by substantially all of its assets, including certain subsidiary equity, subject to customary exclusions. Borrowings accrue interest at the company's option at either an alternate base rate plus 1.25% to 1.75%, or Term SOFR plus 0.10% plus 2.50% to 3.25%, based on the consolidated senior leverage ratio.

Initial term loans amortize quarterly at 3.5714% of the outstanding amount on the last day of the initial term loan availability period. The company said the agreement requires it to maintain certain financial covenants and contains customary representations, warranties and events of default.

The company terminated its Loan and Security Agreement dated July 31, 2025, with BOKF, NA dba BOK Financial as administrative agent, on October 29, 2026, in connection with the new facility. It paid a $350,000 termination fee. The prior facility's scheduled maturity was July 31, 2028, and it had $35 million in unused revolving commitments as of October 29, 2026.