Bank Credit Agreements and Other Short-Term and Long-Term Debt

12 Months Ended

Dec. 31, 2024

Debt Disclosure [Abstract]

Bank Credit Agreements and Other Short-Term and Long-Term Debt

Note 8 – Bank Credit Agreements and Other Short-term and Long-term Debt

Short-term debt

Our Asia subsidiaries maintain credit facilities with several financial institutions through our foreign entities worldwide totaling $146.0 million. Other than two Taiwanese credit facilities that are collateralized by assets, our foreign credit lines are unsecured, uncommitted and contain no restrictive covenants. These credit facilities bear interest at the Taipei Interbank Offered Rate (or similar indices plus a specified margin. Interest payments are due monthly on outstanding amounts under the credit lines. The unused and available credit under the various facilities as of December 31, 2024, was approximately $114.0 million, net of $31.4 million advanced under our foreign credit lines and $0.6 million credit used for import and export guarantee.

Long-term debt

The Company maintains a long-term credit facility (“Credit Agreement”). The Credit Agreement consists of a Revolving Credit Facility in the amount of $225.0 million, including a swing line sublimit equal to the lesser of $50.0 million and the Revolving Credit Facility, a letter of credit sublimit equal to the lesser of $100.0 million and the Revolving Credit Facility, and an alternative currency sublimit equal to the lesser of $40.0 million and the Revolving Credit Facility. The Company has the option to increase the Credit Facility and/or incur Incremental Term Loans in an aggregate principal amount of up to $350.0 million. The Credit Agreement bears interest at Term SOFR or similar other indices plus a specified margin and matures in May 2028. The Credit Agreement contains certain financial and non-financial covenants, including, but not limited to, a maximum Consolidated Leverage Ratio, a minimum Consolidated Interest Coverage Ratio, and restrictions on liens, indebtedness, investments, fundamental changes, dispositions, and restricted payments (including dividends and share repurchases). The Company is permitted to pay dividends up to $75.0 million per fiscal year to our stockholders so long as we have not defaulted at the time of such dividend and no default would result from declaring and paying such dividend. Furthermore, under the Credit Agreement, restricted payments, including dividends and share repurchases, are permitted in certain circumstances, including while the pro forma Consolidated Leverage Ratio is, both before and after giving effect to any such restricted payment, at least 0.25 to 1.00 less than the maximum permitted under the Credit Agreement. Certain capitalized terms used in this description of the Credit Agreement have the meanings given to them in the Credit Agreement, which is attached as Exhibit 10.1 to our Current Report on Form 8-K that we filed with the SEC on June 2, 2023. The Borrowers have the option to increase the Revolving Facility and/or incur Incremental Term Loans in an aggregate principal amount of up to $350.0 million.

Borrowings outstanding as of December 31, 2024 and December 31, 2023, are set forth in the table below:

	December 31,
Description	2024			2023			Interest Rate	Current Amount Maturity
Short-term debt	$	31,429		$	40,685		Various indices plus margin	Various during 2025
Long-term debt
Notes payable to Bank of Taiwan		1,593			1,880		2-yr deposit rate floating plus 0.1148%	June 2033
Notes payable to Bank of Taiwan		3,052			1,626		2-yr deposit rate floating plus 0.082%	September 2026
Notes payable to CTBC Bank		3,052			3,252		TAIBOR 3M plus 0.5%	March 2026
Notes payable to CTBC Bank		11,606			13,098		TAIBOR 3M plus 0.5%	May 2028
Notes payable to E Sun Bank		148			217		1-M deposit rate floating plus 0.08%	July 2027
Notes payable to E Sun Bank		1,064			1,325		1-M deposit rate floating plus 0.08%	July 2030
Notes payable to E Sun Bank		144			-		Variable	September 2026
Total long-term debt		20,659			21,398
Less: Current portion of long-term debt		(1,096	)		(4,419	)
Total long-term debt, net of current portion	$	19,563		$	16,979

The table below sets forth the annual contractual maturities of long-term debt at December 31, 2024:

2025	$	1,096
2026		7,309
2027		1,130
2028		9,936
2029		385
2030 and thereafter		803
Total long-term debt	$	20,659