Applied Optoelectronics, Inc., a leading provider of fiber-optic access network products for the cable broadband, internet data center, and fiber-to-the-home markets, today announced that it entered into a new credit agreement with East West Bank to expand its borrowing capacity to $15 million in order to fund general working capital and manufacturing expansion needs.
"The new credit agreement is consistent with the previously announced capital investment plans and increasing working capital needs to support rising demand in our data center and fiber-to-the-home markets," said James L. Dunn, AOI's CFO. "We are most pleased to have restructured our credit agreement with East West Bank, a long-time partner that has supported AOI since 2009," concluded Mr. Dunn.
The new credit agreement replaces in its entirety the previous $7 million credit line, reduces the interest rate, eases financial covenants, reduces the reporting burden and eliminates collateralization of AOI's intellectual property. The specific terms of the credit agreement have been provided in an 8-K on file with the SEC.