Applied Optoelectronics Trades BOK Financial For A $200 Million East West Bank Credit Line
The fiber-optics maker paid a $350,000 fee to end its prior loan and opened a four-year facility with room for $50 million more.
Applied Optoelectronics, which makes fiber-optic networking products for data centers, cable and telecom networks, replaced its bank lender with a $200 million secured credit facility from East West Bank, according to an 8-K filed Wednesday. The company agreed to the new deal on October 30, 2026, after ending its BOK Financial loan on October 29, 2026.
Terms of the East West deal
The facility splits into $30 million of revolving commitments and $170 million of initial term loan commitments, with East West Bank serving as administrative agent. It matures on October 30, 2030, and the company may ask for up to $50 million in additional term loans, subject to certain conditions.
Term loan money can go toward buying or refinancing eligible equipment. Revolver borrowings are for working capital and general corporate purposes. The company's obligations are secured by substantially all of its assets, including certain subsidiary equity, subject to customary exclusions.
Borrowing costs depend on the company's senior leverage ratio. SOFR loans (a benchmark short-term rate) carry Term SOFR plus 0.10% plus an applicable rate of 2.50% to 3.25%, while loans pegged to an alternate base rate carry an applicable rate of 1.25% to 1.75%. The initial term loans amortize quarterly at 3.5714% of the outstanding amount, measured on the last day of the initial term loan availability period.
The $350,000 exit from BOK Financial
The replaced agreement was a loan and security agreement dated July 31, 2025 with BOKF, NA dba BOK Financial. It was set to mature on July 31, 2028. As of October 29, 2026, the company had $35 million of unused revolving commitments under it.
Applied Optoelectronics paid a $350,000 termination fee to close it out.
A business tied to two customers
The company makes lasers and components, modules and complete equipment. Cable television supplied 53.8% of its 2025 revenue and internet data centers 42.9%, according to its annual report. Digicomm accounted for 53.1% of that revenue and Microsoft for 28.8%, on total 2025 revenue of $455.7 million.
Its laser chips are made in Sugar Land, Texas, with manufacturing sites in China and Taiwan. The new term loans are earmarked for equipment purchases.
The new facility requires the company to maintain financial covenants, and its term loans begin amortizing at 3.5714% quarterly once the availability period ends.
