Company: AOSL
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001387467-25-000066
Chunk: 81

Company: ALPHA & OMEGA SEMICONDUCTOR Ltd
Filing Date: 2025-11-06
Form: 10-Q
Item: Item 8
Chunk 81
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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 our fabrication facility located in Oregon.  The obligation under the loan agreement is secured by substantially all assets of Jireh and guaranteed by us.  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 we are 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 June 30, 2025, Jireh was in compliance with these covenants and the outstanding balance of this loan was $20.3 million.  In August 2025, we paid the outstanding balance in full.  As of August 2025, this agreement was terminated with no outstanding balance.

On August 9, 2019, one of our wholly-owned subsidiaries (the "Borrower") entered into a factoring agreement with the 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. We are the guarantor for this agreement. We are accounting for this transaction as a secured borrowing under the Transfers and Servicing of Financial Assets guidance. In addition, any cash held in the restricted bank account controlled by HSBC has a legal right of offset against the borrowing. This agreement, with certain financial covenants required, has no expiration date. On August 11, 2021, the Borrower signed an agreement with 

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HSBC to decrease the borrowing maximum amount to $8.0 million with certain financial covenants required.  Other terms remain the same. In August 2025, this factoring agreement