Company: AAOI
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001437749-25-033627
Chunk: 28

Company: APPLIED OPTOELECTRONICS, INC.
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 1
Chunk 28
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 the Company, as issuer, and Computershare Trust Company, N.A., as trustee.  The 2030 Notes bear interest at a rate of 2.750% per year and will pay interest semiannually in arrears on  January 15 and  July 15 of each year, beginning on  July 15, 2025. The 2030 Notes will mature on  January 15, 2030, unless earlier converted, redeemed or repurchased in accordance with their terms.  
   The following table presents the carrying value of the 2026 Notes and the 2030 Notes for the periods indicated (in thousands):
   ​
   
       September 30,    December 31,  
   2025    2024  
 2026 Notes         
 Principal  $-  $3,500 
 Unamortized debt issuance costs   —   (83)
 Net carrying amount   -   3,417 
 2030 Notes         
 Principal   125,000   125,000 
 Premium upon issuance   8,888   10,416 
 Unamortized debt issuance costs   (3,768)  (4,336)
 Net carrying amount   130,120   131,080 
 Total net carrying amount  $130,120  $134,497 

   The conversion rate for the 2030 Notes is 23.0884 shares of Common Stock per $1,000 principal amount of the 2030 Notes (which is equivalent to a conversion price of approximately $43.31 per share of Common Stock, representing a premium of approximately 27.50% over the last reported sale price of the Common Stock on  December 18, 2024 of $33.97 per share), subject to adjustment. Before  October 15, 2029, holders of the 2030 Notes will have the right to convert their 2030 Notes only upon the satisfaction of a common stock sale price condition or a note trading price condition (each, as described in the Indenture) or upon the occurrence of certain events (including the occurrence of a Fundamental Change, Make-Whole Fundamental Change or Common Stock Change Event (each as defined in the Indenture). From and after  October 15, 2029,