Credit Agreement

3 Months Ended

Oct. 01, 2011

Credit Agreement [Abstract]

CREDIT AGREEMENT

NOTE 6. CREDIT AGREEMENT

On July 26, 2011, Oclaro Technology Ltd., as “Borrower,” and Oclaro, Inc., as “Parent,” entered into an amendment and restatement to our existing senior secured credit facility (the Credit Agreement) with Wells Fargo Capital Finance, Inc. and other lenders, increasing the facility size from $25 million to $45 million and extending the term thereof to August 1, 2014. This Credit Agreement is more fully discussed in Note 6, Credit Agreement, and Note 16, Subsequent Event, to our consolidated financial statements included in our 2011 Form 10-K.

As of October 1, 2011 there was $19.5 million outstanding under the Credit Agreement at an average interest rate of 3.24% and we were in compliance with all covenants. As of July 2, 2011, there were no amounts outstanding under the Credit Agreement. At October 1, 2011 and July 2, 2011, there were $0.1 million and $1.1 million, respectively, in outstanding standby letters of credit secured under the Credit Agreement. These letters of credit expire at various intervals through April 2014.