East West Bank’s AOI Agreement Increases Borrowing
Applied Optoelectronics announced it entered into a credit agreement with East West Bank to expand its borrowing capacity to $15 million to fund general working capital and manufacturing expansion needs.
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 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.”
Applied Optoelectronics (AOI) is a developer and manufacturer of advanced optical products, including components, modules, and equipment.