Company: AAOI
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001437749-25-025450
Chunk: 114

Company: APPLIED OPTOELECTRONICS, INC.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 114
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 into exchange agreements with certain holders of the 2026 Notes to exchange approximately $76.7 million principal amount of the 2026 Notes for aggregate consideration consisting of (i) $125.0 million aggregate principal amount of 2.75% Convertible Senior Notes due 2030 (the "2030 Notes"), (ii) 1,487,874 shares of the Company’s common stock, par value $0.001 per share (the "Common Stock") and (iii) approximately $89.6 thousands of cash in aggregate, representing accrued and unpaid interest on the 2026 Notes and the value of fractional shares of Common Stock (such transactions, collectively, the "Exchanges"). There was $3.5 million principal amount for the 2026 Notes remaining. The Exchanges closed on  December 23, 2024. 
    
   The 2030 Notes were issued pursuant to an Indenture, dated as of  December 23, 2024 (the "Indenture"), between 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):
   ​
   
       June 30,    December 31,  
 ​   2025    2024  
 2026 Notes         
 Principal  $3,500  $3,500 
 Unamortized debt issuance costs   —   (83)
 Net carrying amount   3,500   3,417 
 2030 Notes         
 Principal   125,000   125,000 
 Premium upon issuance   9,398   10,416 
 Unamortized debt issuance costs   (3,962)  (4,336)
 Net carrying amount   130,436   131,080