Company: AAOI
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001437749-25-025450
Chunk: 112

Company: APPLIED OPTOELECTRONICS, INC.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 112
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 or declined by CZB due to changes in Chinese government regulations and/or changes in Global's financial and operational condition. Each draw will be facilitated by a separate credit agreement specifying the terms of each draw and will bear interest equal to CZB's commercial banking interest rate effective on the day of the applicable draw. Global's obligations under the Pledge Asset Line will be secured by certain financial assets, including but not limited to, deposit receipts, domestic accounts receivable and electronic commercial paper. As of  June 30, 2025, $8.7 million was outstanding under the ¥200M Credit Facility, and the outstanding balance of bank acceptance notes issued to vendors was $24.0 million.
    
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   On  June 12, 2025, Global entered into a one-year credit facility with China Construction Bank Co., Ltd., in Ningbo, City, China ("CCB"), totaling 96,800,000 RMB (the "CCB Credit Facility"), or approximately $13.5 million at that time. Borrowing under the CCB Credit Facility will be used to repay the certain amounts outstanding under the Renewed SPD Credit Line. Borrowing under the CCB Credit Facility will mature on  June 16, 2026, and will bear interest equal to the CCB's published twelve (12) month prime loan rate, minus 0.05%. As of the date of execution of the CCB Credit Facility, the CCB's published 12-month prime rate was 3%. Under the CCB Credit Facility, Global will make monthly payments of accrued interest and the principal shall be repaid upon maturity.
    
   On  June 26, 2025, Global entered into a five-year revolving credit line agreement with CCB, totaling 162,260,000 RMB (the "CCB Credit Line"), or approximately $22.7 million at that time, as well as a related security agreement (the "Security Agreement"). Borrowing under the CCB Credit Line will be used for general corporate and capital investment purposes. Global  may draw on the CCB Credit Line at any time from  June 26, 2025 through  June 26, 2030. The amount available under the CCB Credit Line is inclusive of the CCB Credit Facility previously granted by CCB on  June 12, 2025. Each draw is subject to a separate application and approval by CCB and will bear interest equal to CCB's commercial banking interest rate