CIT Northbridge Credit Provides $27.78 Million Credit Facility to Applied Optoelectronics

Rhea-AI Summary

CIT Northbridge Credit announced a $27.78 million credit facility for Applied Optoelectronics, Inc. (AAOI), a leading provider of fiber-optic networking products. This financing aims to address the increasing bandwidth demand driven by the growth of network-connected devices and cloud computing. The credit facility supports AOI's strategy for market expansion and innovation in fiber-optic technology. CIT, part of First Citizens Bank, is focused on providing flexible debt solutions to support middle-market companies.

Positive

• CIT Northbridge Credit provides a substantial credit facility of $27.78 million to support Applied Optoelectronics' growth strategy.
• The financing focuses on meeting increasing bandwidth demand from growing end-markets, including internet data centers and telecommunications.

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• None.

NEW YORK, Dec. 5, 2022 /PRNewswire/ -- CIT, a division of First Citizens Bank, today announced that CIT Northbridge Credit, as advised by CIT Asset Management LLC, served as agent on a $27.78 million credit facility for Applied Optoelectronics, Inc. (NASDAQ: AAOI), a leading provider of fiber-optic networking products.

Founded in 1997 and headquartered in Sugar Land, Texas, Applied Optoelectronics, Inc. ("AOI") is a leading provider of fiber-optic access network products for the internet data center, cable broadband, fiber-to-the-home and telecommunications markets.

"The end-markets we serve are driven by bandwidth demand fueled by the growth of network-connected devices, video traffic, cloud computing and online social networking," said Stefan Murry, AOI's Chief Financial Officer. "The financing provided by CIT Northbridge Credit supports our continued focus on meeting the increased bandwidth demand through fiber-optic networking technology, which we believe has become essential in all of our key markets."

"AOI has a long history of relationships with reputable, credit-worthy customers across the end-markets it serves," said Neal Legan, who leads CIT Northbridge Credit. "We are pleased to have worked closely with AOI to provide a financing package that supports their business strategy and future customer expansion."

CIT Northbridge Credit is a trusted financial partner supporting middle-market companies with a broad range of flexible asset-based debt solutions. A joint venture advised by CIT Asset Management, it provides revolving and term loan commitments from $15 million to $150 million to companies across various industries and business cycles, and serves primarily as sole lender, agent, club participant or co-lender.

About CIT
CIT is a division of First Citizens Bank, the largest family-controlled bank in the United States, continuing a unique legacy of strength, stability and long-term thinking that has spanned generations. Parent company, First Citizens BancShares, Inc. (NASDAQ: FCNCA) is a top 20 U.S. financial institution with more than $100 billion in assets. The company's commercial banking segment brings a wide array of best-in-class lending, leasing and banking services to middle-market companies and small businesses from coast to coast. First Citizens also operates a nationwide direct bank and a network of more than 550 branches in 22 states, many in high-growth markets. Industry specialists bring a depth of expertise that helps businesses and individuals meet their specific goals at every stage of their financial journey. Discover more at cit.com/firstcitizens.

About Applied Optoelectronics
Applied Optoelectronics Inc. (AOI) is a leading developer and manufacturer of advanced optical products, including components, modules and equipment. AOI's products are the building blocks for broadband fiber access networks around the world, where they are used in the internet datacenter, CATV broadband, telecom and FTTH markets. AOI supplies optical networking lasers, components and equipment to tier-1 customers in all four of these markets. In addition to its corporate headquarters, wafer fab and advanced engineering and production facilities in Sugar Land, TX, AOI has engineering and manufacturing facilities in Taipei, Taiwan and Ningbo, China. For additional information, visit www.ao-inc.com.

MEDIA RELATIONS:
Lexa Tutela
212-461-5305
Lexa.Tutela@firstcitizens.com

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SOURCE CIT, a division of First Citizens Bank

FAQ

What is the value of the credit facility provided to Applied Optoelectronics?

CIT Northbridge Credit provided a credit facility worth $27.78 million to Applied Optoelectronics, Inc. (AAOI).

Which company provided the credit facility to AAOI?

CIT Northbridge Credit, a division of First Citizens Bank, provided the credit facility to Applied Optoelectronics.

When was the credit facility announcement made?

The credit facility announcement was made on December 5, 2022.

What is the purpose of the credit facility for Applied Optoelectronics?

The credit facility is aimed at supporting Applied Optoelectronics in meeting the growing bandwidth demand in various markets.

What does Applied Optoelectronics specialize in?

Applied Optoelectronics specializes in providing fiber-optic networking products for the internet data center, cable broadband, and telecommunications markets.

Who is the parent company of CIT Northbridge Credit?

CIT Northbridge Credit is a division of First Citizens Bank, which is the parent company of First Citizens BancShares, Inc. (FCNCA).