NEOPHOTONICS CORPORATION (NYSE:NPTN) Files An 8-K Entry into a Material Definitive AgreementITEM 1.01 ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT.
On April 28, 2017, NeoPhotonics Corporation (the “Company”) entered into an Eleventh Amendment to Credit Agreement (the “Amendment”) to that certain Revolving Credit and Term Loan Agreement (the “Credit Agreement”), dated as of March 21, 2013, with Comerica Bank, as Administrative Agent and Lead Arranger (the “Agent”), and the lenders from time to time party thereto. The Amendment provided for an extension of the maturity date of the revolving credit line under the Credit Agreement to July 31, 2017. The Amendment also added a financial covenant that requires the Company to maintain EBITDA (for the two consecutive quarters then ending) of not less than 50% of the projected EBITDA to a forecast delivered to the lenders. Finally, the amendment reduced the maximum amount of permitted repurchases of equity interests to $250,000 per fiscal year, and extended the existing $62,000,000 limitation on capital expenditures to fiscal years 2017 and 2018.
The foregoing description of the Amendment is not intended to be complete and is qualified in its entirety by reference to the full text of the Amendment, which will be filed as an exhibit to the Company’s Quarterly Report on Form 10-Q for the fiscal quarter ending June 30, 2017.