Company: AOSL
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001387467-25-000044
Chunk: 133

Company: ALPHA & OMEGA SEMICONDUCTOR Ltd
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 2
Chunk 133
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.  The agreement was amended with fixed implied interest rate of 7.51% and monthly payment of principal and interest effective in October 2022.  Other terms remain the same.  In addition, Jireh purchased hardware for the machine under this financing arrangement.  The purchase price of this hardware was $0.2 million.  The financing arrangement is secured by this equipment and other equipment at Jireh, which had the net book value of $12.5 million as of March 31, 2025.  As of March 31, 2025, the outstanding balance of this debt financing was $7.2 million. 

On August 18, 2021, Jireh entered into a term loan agreement with a financial institution (the “Bank”) in an amount up to $45.0 million for the purpose of expanding and upgrading the Company’s fabrication facility located in Oregon.  The obligation 

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under the loan agreement is secured by substantially all assets of Jireh and guaranteed by the Company.  The agreement has a 5.5 year term and matures on February 16, 2027.  Jireh is required to make consecutive quarterly payments of principal and interest.  The loan accrues interest based on adjusted SOFR plus the applicable margin based on the outstanding balance of the loan.  This agreement contains customary restrictive covenants and includes certain financial covenants that the Company is required to maintain.  Jireh drew down $45.0 million on February 16, 2022 with the first payment of principal beginning in October 2022.  As of March 31, 2025, Jireh was in compliance with these covenants and the outstanding balance of this loan was $22.5 million.

On August 9, 2019, one of the Company’s wholly-owned subsidiaries (the “Borrower”) entered into a factoring agreement with Hongkong and Shanghai Banking Corporation Limited (“HSBC”), whereby the Borrower assigns certain of its accounts receivable with recourse.  This factoring agreement allows the Borrower to borrow up to 70% of the net amount of its eligible accounts receivable of the Borrower with a maximum amount of $30.0 million.  The interest rate is based on the Secured Overnight Financing Rate (“SOFR”), plus 2.01% per annum.  The Company is the guarantor for this agreement.  The Company is accounting