Oclaro obtains waiver under credit facility for delayed asset sale

By Marisa Wong

Madison, Wis., Oct. 2 - Oclaro, Inc. and the lenders under its second amended and restated credit agreement dated Nov. 2, 2012 with Wells Fargo Capital Finance, LLC as administrative agent entered into a waiver to the credit agreement on Sept. 26, according to an 8-K filed Wednesday with the Securities and Exchange Commission.

The lenders waived the covenant default that resulted from a delay in completion of an asset sale.

On Aug. 21 the credit agreement had been amended to include a covenant requiring Oclaro to complete specific asset sales by Sept. 2.

On Sept. 12 Oclaro sold some assets to II-VI Holdings BV, a Netherlands corporation and wholly owned subsidiary of II-VI Inc. The asset sale satisfied the bulk of the covenant, but it was not completed until 10 days after the Sept. 2 deadline. This constituted a breach of the covenant.

Following the asset sale, Oclaro repaid all loans outstanding under the credit agreement, and as of Oct. 1, there are no amounts outstanding under the credit agreement.

The company and its lenders are currently discussing whether to terminate or further amend the credit agreement to reflect the changed nature of Oclaro's business following the sale of its assets to II-VI and a potential sale of its optical amplifier and micro-optics business.

Based in San Jose, Calif., Oclaro makes optical and laser components for the telecommunications, industrial, consumer electronics, medical and science markets.

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