Applied Optoelectronics(US:AAOI) Globenewswire·2024-12-23 22:25Core Viewpoint - Applied Optoelectronics, Inc. (AOI) is enhancing its financial position through a convertible debt exchange and a registered direct offering, which will extend the maturity of its debt and improve cash flow while minimizing shareholder dilution [1][2]. Financial Transactions - AOI has exchanged approximately $76.7 million principal amount of its 5.25% Convertible Senior Notes due 2026 for $125 million principal amount of 2.75% Convertible Senior Notes due 2030, along with shares of common stock and cash for accrued interest [2]. - The new 2030 Notes will bear an interest rate of 2.75% per year, payable semiannually, and will mature on January 15, 2030 [3]. - The initial conversion rate for the 2030 Notes is approximately 23.0884 shares per $1,000 principal amount, equating to a conversion price of about $43.31 per share, representing a 27.50% premium to the stock's closing price on December 18, 2024 [4]. Registered Direct Offering - Concurrently, AOI issued 1,036,458 shares of common stock at a price of $33.97 per share, resulting in estimated net proceeds of approximately $33.7 million for general corporate purposes [8]. - The offering was conducted under an automatic shelf registration statement, which became effective immediately upon filing with the SEC [9]. Debt Redemption and Repurchase - The 2030 Notes cannot be redeemed prior to January 15, 2027, but can be redeemed if the stock price exceeds 130% of the conversion price for a specified period [6]. - Holders of the 2030 Notes have the right to require repurchase upon a Fundamental Change at a cash price equal to the principal amount plus accrued interest [6]. Company Overview - AOI is a leading developer and manufacturer of advanced optical products, serving markets such as CATV broadband, internet datacenter, telecom, and fiber-to-the-home [15].