Applied Optoelectronics Closes Exchange of 2026 Notes and Concurrent Registered Direct Offering
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Applied Optoelectronics, Inc. (NASDAQ: AAOI) has completed an exchange of its 5.25% Convertible Senior Notes due 2026 for new 2.75% Convertible Senior Notes due 2030, common stock, and cash. This move is part of a strategic financial restructuring.
December 23, 2024 | 10:45 pm
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Applied Optoelectronics has exchanged its 2026 Notes for new 2030 Notes, common stock, and cash, indicating a strategic move to manage its debt and extend maturities.
The exchange of notes reduces the interest rate from 5.25% to 2.75% and extends the maturity to 2030, which is likely to improve AAOI's financial flexibility and reduce interest expenses. The issuance of common stock may dilute existing shareholders but is part of a broader strategy to manage debt effectively.
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