Company: AOSL
Filing Date: 2025-02-06
Form Type: 10-Q
Source: 0001387467-25-000017
Chunk: 109

Company: ALPHA & OMEGA SEMICONDUCTOR Ltd
Filing Date: 2025-02-06
Form: 10-Q
Item: Item 8
Chunk 109
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 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 under the loan agreement is secured by substantially all assets of Jireh and guaranteed by the Company.  The agreement has a 

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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 December 31, 2024, Jireh was in compliance with these covenants and the outstanding balance of this loan was $24.7 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 for this transaction as a secured borrowing.  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 HSBC to reduce the borrowing maximum amount to $8.0 million with certain financial covenants required.  Other terms remain the same.  As of December 31, 2024, the Borrower was in compliance with these covenants.  As of December 31, 2024, there was no outstanding balance and the Company had unused credit of approximately $8.0 million. 

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