Applied Optoelectronics Announces Exchange Agreement for Notes and Registered Direct Offering

Applied Optoelectronics, Inc. recently disclosed an agreement pertaining to the exchange of its 5.25% Convertible Senior Notes due 2026 for 2.75% Convertible Senior Notes due 2030, along with common stock and cash. The exchange, valued at approximately $76.7 million, is set to close around December 23, 2024, subject to standard closing conditions.

The Exchange Agreements stipulate established representations, warranties, and agreements by the company and the Noteholders. The issuance of the 2030 Notes and the Exchange Shares adheres to exemptions from registration under the Securities Act of 1933.

Additionally, the company has entered a Placement Agency Agreement with Raymond James & Associates, Inc. for a Registered Direct Offering, involving 1,036,458 shares of Common Stock at $33.97 per share. The net proceeds, estimated at approximately $33,636,846, will be channeled towards general corporate purposes, potentially including capital expenditures, working capital, and strategic acquisitions.

The Registered Direct Offering is anticipated to conclude around December 23, 2024, pending customary closure requisites. Both the Exchange Agreement and the Registered Direct Offering’s Pricing Press Release provided detailed insights into the transactions.

Throughout the disclosures, Applied Optoelectronics reiterated forward-looking statements highlighting possible risks and uncertainties that could influence actual results. The company emphasized the need for investors to understand the risks outlined in their filings with the Securities and Exchange Commission.

Haynes Boone LLP and Mayer Brown LLP are serving as legal advisors for the company and Raymond James & Associates, Inc., respectively, concerning these financial transactions. Applied Optoelectronics continues to leverage its position as a leading developer and manufacturer of optical products for various markets globally.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Applied Optoelectronics’s 8K filing here.

About Applied Optoelectronics

Applied Optoelectronics, Inc designs, manufactures, and sells fiber-optic networking products in the United States, Taiwan, and China. It offers optical modules, optical filters, lasers, laser components, subassemblies, transmitters and transceivers, turn-key equipment, headend, node, distribution equipment, and amplifiers.