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OFFON

II-VI INCORPORATED

(IIVI)
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II-VI INC MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (form 10-Q)

11/09/2021 | 04:11pm EST
Forward-Looking Statements
Certain statements contained in the Management's Discussion and Analysis of
Financial Condition and Results of Operations are forward-looking statements as
defined by Section 21E of the Securities Exchange Act of 1934, as amended,
including statements regarding projected growth rates, markets, product
development, financial position, capital expenditures and foreign currency
exposure. Forward-looking statements are also identified by words such as
"expects," "anticipates," "intends," "plans," "projects" or similar expressions.
Although our management considers the expectations and assumptions on which the
forward-looking statements in this Quarterly Report on Form 10-Q are based to
have a reasonable basis, there can be no assurance that management's
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  Table of Contents
expectations, beliefs or projections as expressed in the forward-looking
statements will actually occur or prove to be correct. In addition to general
industry and global economic conditions, factors that could cause actual results
to differ materially from those discussed in the forward-looking statements in
this Quarterly Report on Form 10-Q include, but are not limited to: (i) the
failure of any one or more of the expectations or assumptions on which such
forward-looking statements are based to prove to be correct; and (ii) the risks
relating to forward-looking statements and other "Risk Factors" discussed in the
Company's Annual Report on Form 10-K for the fiscal year ended June 30, 2021 and
in the Company's other reports filed with the Securities and Exchange
Commission. The Company disclaims any obligation to update information contained
in these forward-looking statements whether as a result of new information,
future events or developments, or otherwise.
In addition, we operate in a highly competitive and rapidly changing
environment; new risk factors can arise, and it is not possible for management
to anticipate all such risk factors, or to assess the impact of all such risk
factors on our business or the extent to which any individual risk factor, or
combination of risk factors, may cause results to differ materially from those
contained in any forward-looking statement. The forward-looking statements
included in this Quarterly Report on Form 10-Q are based only on information
currently available to us and speak only as of the date of this Report. We do
not assume any obligation, and do not intend to, update any forward-looking
statements, whether as a result of new information, future developments or
otherwise, except as may be required by the securities laws. Investors should,
however, consult any further disclosures of a forward-looking nature that the
Company may make in its subsequent Annual Reports on Form 10-K, Quarterly
Reports on Form 10-Q, Current Reports on Form 8-K, or other disclosures filed
with or furnished to the SEC.
Investors should also be aware that, while the Company does communicate with
securities analysts from time to time, such communications are conducted in
accordance with applicable securities laws. Investors should not assume that the
Company agrees with any statement, conclusion of any analysis, or report issued
by any analyst irrespective of the content of the statement or report.
Overview
II-VI Incorporated ("II-VI," the "Company," "we," "us" or "our"), a worldwide
leader in engineered materials and opto-electronic components, is a vertically
integrated manufacturing company that develops innovative products for
communications, industrial, aerospace and defense, consumer electronics,
semiconductor capital equipment, life sciences and automotive end markets. The
Company produces a wide variety of application-specific photonic and electronic
materials and components, and deploys them in various forms, including
integration with advanced software.
The Company generates revenues, earnings and cash flows from developing,
manufacturing and marketing a broad portfolio of products for our end markets.
We also generate revenue, earnings and cash flows from government-funded
research and development contracts relating to the development and manufacture
of new technologies, materials and products.
Our customer base includes original equipment manufacturers, laser end users,
system integrators of high-power lasers, manufacturers of equipment and devices
for industrial, optical communications, consumer electronics, security and
monitoring applications, U.S. government prime contractors, and various U.S.
government agencies.
As we grow, we are focused on scaling our company and deriving the continued
benefits of vertical integration as we strive to be a best in class competitor
in all of our highly competitive markets. The Company may elect to change the
way in which the Company operates or is organized in the future to enable the
most efficient implementation of our strategy.
Pending Coherent Acquisition
On March 25, 2021, II-VI, Coherent, Inc. ("Coherent") and Watson Merger Sub
Inc., a wholly owned subsidiary of II-VI ("Merger Sub"), entered into an
Agreement and Plan of Merger (the "Merger Agreement"). Pursuant to the terms of
the Merger Agreement, and subject to the conditions set forth therein, Merger
Sub will be merged with and into Coherent, and Coherent will continue as the
surviving corporation in the merger and wholly owned subsidiary of II-VI (the
"Merger").

Pursuant to the terms of the Merger Agreement, and subject to the conditions set
forth therein, at the effective time of the Merger (the "Effective Time"), each
share of common stock of Coherent (the "Coherent Common Stock") issued and
outstanding immediately prior to the Effective Time will be canceled and
extinguished and automatically converted into the right to receive the following
consideration (collectively, the "Merger Consideration"): (A) $220.00 in cash,
without interest (the "Cash Consideration"), and (B) 0.91 of a validly issued,
fully paid and nonassessable share of our common stock of II-VI.

Pursuant to the terms of the Merger Agreement, each Coherent restricted stock unit award (a "Coherent RSU"), other than Director RSUs (as defined below), outstanding immediately prior to the Effective Time will be automatically converted into

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time-based restricted stock units denominated in shares of II-VI Common Stock
entitling the holder to receive, upon settlement, a number of shares of II-VI
Common Stock equal to the number of shares of Coherent Common Stock subject to
the Coherent RSU multiplied by the sum of (A) 0.91, and (B) the quotient
obtained by dividing the Cash Consideration by the volume weighted average price
of a share of II-VI Common Stock for a 10 trading day period ending prior to the
closing of the Merger (the "Closing"). For Coherent RSUs subject to
performance-based vesting conditions and metrics, the number of shares of II-VI
Common Stock subject to the converted Coherent RSUs will be determined after
giving effect to the Coherent Board of Directors' determination of the number of
Coherent RSUs earned, based on the greater of the target or actual level of
achievement of such goals or metrics immediately prior to the Effective Time.

The converted Coherent RSUs generally will be subject to the same terms and
conditions that applied to the awards immediately prior to the Effective Time,
provided that any Coherent RSUs subject to performance-based vesting conditions
will be subject solely to time-and service-based vesting. Each Coherent RSU that
is outstanding as of the date of the Merger Agreement and as of immediately
prior to the Effective Time will be entitled to certain vesting acceleration
benefits.

Each Coherent RSU granted to a non-employee member of Coherent's Board of
Directors ("Director RSUs") (whether or not vested) that is outstanding
immediately prior to the Effective Time will automatically vest in full and be
canceled and converted into the right to receive the Merger Consideration as if
such Director RSU had been settled in shares of Coherent Common Stock
immediately prior to the Effective Time.

The Boards of Directors of II-VI and Coherent unanimously approved the Merger
and the Merger Agreement. II-VI filed with the SEC a registration statement on
Form S-4 relating to the Merger, and the SEC declared that registration
statement to be effective on May 6, 2021. Shareholders of II-VI and stockholders
of Coherent voted to approve proposals related to the Merger at special meetings
held on June 24, 2021 by the respective companies.

The completion of the Merger is subject to the satisfaction or waiver of certain
additional customary closing conditions, including review and approval of the
Merger by the State Administration for Market Regulation in China. Subject to
the satisfaction or waiver of each of the closing conditions, II-VI expects that
the Merger will be completed in the first calendar quarter of 2022. However, it
is possible that factors outside the control of both companies could result in
the Merger being completed at a different time or not at all.

In connection with entering into the Merger Agreement, II-VI has obtained a
fully underwritten financing commitment pursuant to a commitment letter (the
"Commitment Letter"), dated as of March 25, 2021, as further amended and
restated on April 21, 2021, with JPMorgan Chase Bank, N.A., Citigroup Global
Markets Inc., MUFG Bank, Ltd., MUFG Securities Americas Inc., PNC Capital
Markets LLC, PNC Bank, National Association, HSBC Securities (USA) Inc., HSBC
Bank USA, National Association, Citizens Bank, N.A., Mizuho Bank, Ltd., BMO
Capital Markets Corp., Bank of Montreal, TD Securities (USA) LLC, The
Toronto-Dominion Bank, New York Branch, TD Bank, N.A. and First National Bank of
Pennsylvania (collectively, the "Commitment Parties") pursuant to which the
Commitment Parties have committed to provide up to $5.125 billion in debt
financing. II-VI and the Commitment Parties amended and restated the Commitment
Letter on October 25, 2021 (the "Amended and Restated Commitment Letter") to
effect certain amendments thereto, including to reduce the total amounts of
commitments thereunder to $4.99 billion. The obligation of the Commitment
Parties to provide the debt financing provided for in the Amended and Restated
Commitment Letter is subject to a number of customary conditions.

In connection with entering into the Merger Agreement, II-VI entered into an
Amended and Restated Investment Agreement, dated as of as of March 30, 2021,
(the "Investment Agreement"), with BCPE Watson (DE) SPV, LP, an affiliate of
Bain Capital Private Equity, LP (the "Investor"). Pursuant to the terms of the
Investment Agreement, on March 31, 2021, II-VI issued, sold, and delivered to
the Investor 75,000 shares of a new Series B-1 Convertible Preferred Stock of
the Company ("II-VI Series B-1 Convertible Preferred Stock") for $10,000 per
share (the "Equity Per Share Price"), resulting in an aggregate purchase price
of

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$750 million. Subject to the terms and conditions of the Investment Agreement,
among other things, the Company and the Investor also agreed that the company
would issue, sell and deliver to the Investor:

•105,000 shares of a new Series B-2 Convertible Preferred Stock of the Company
("II-VI Series B-2 Convertible Preferred Stock") for a purchase price per share
equal to the Equity Per Share Price, resulting in an aggregate purchase price of
$1.1 billion, immediately prior to Closing; and

•immediately prior to Closing, if elected by the Company and agreed by the
Investor, up to an additional 35,000 shares of II-VI Series B-2 Convertible
Preferred Stock (the "Upsize Shares") for a purchase price per share equal to
the Equity Per Share Price, resulting in an aggregate maximum purchase price for
the Upsize Shares of $350 million.

Following the Company's provision of notice to the Investor of its election to
offer the Upsize Shares, the Investor informed the Company on June 8, 2021 of
its agreement to purchase the Upsize Shares from the Company immediately prior
to the Closing, increasing the Investor's total equity commitment to II-VI
pursuant to the Investment Agreement to $2.2 billion.

The expenses associated with the pending acquisition for the three months ended
September 30, 2021, have not been allocated to an Operating Segment, and are
presented in the Unallocated and Other within this Quarterly Report.
Critical Accounting Estimates
The preparation of financial statements and related disclosures are in
conformity with accounting principles generally accepted in the United States of
America and the Company's discussion and analysis of its financial condition and
results of operations require the Company's management to make judgments,
assumptions and estimates that affect the amounts reported in its condensed
consolidated financial statements and accompanying notes. Note 1 of the Notes to
Consolidated Financial Statements in the Company's Annual Report on Form 10-K
dated August 20, 2021 describes the significant accounting policies and methods
used in the preparation of the Company's consolidated financial statements.
New Accounting Standards
See Note 2. Recently Issued Accounting Pronouncements to our unaudited condensed
consolidated financial statements in Part I, Item 1 of this Quarterly Report on
Form 10-Q for a description of recent accounting pronouncements, including the
expected dates of adoption and estimated effects, if any, on our consolidated
financial statements.
COVID-19 Update
On March 11, 2020, the World Health Organization designated the novel
coronavirus disease known as COVID-19 as a global pandemic. In response to the
global spread of COVID-19, governments at various levels have implemented
unprecedented response measures. Overall, the COVID-19 pandemic has
significantly curtailed global economic activity and caused significant
volatility and disruption in global financial markets. Certain of the measures
taken in response to the COVID-19 pandemic have adversely affected, and could in
the future materially adversely impact, our business, results of operations,
financial condition and stock price. In particular, the COVID-19 pandemic
continues to have a significant impact on global trade, which has resulted in
supply chain and production disruptions impacting our business.

Our focus has been on the protection of the health and safety of our employees
and business partners. In our facilities, we have deployed new safety measures,
including guidance to employees on matters such as effective hygiene and
disinfection, social distancing, limited and remote access working where
feasible and use of protective equipment. We also are prioritizing efforts to
understand and support the changing business needs of our customers and
suppliers in light of restrictions that are applicable to them.

In addition, our supply chain has been affected by measures implemented in
response to the pandemic and in certain cases, our suppliers have not had the
materials, capacity or capability to supply us with the components necessary for
continuing our manufacturing operations or development efforts at our normal
levels. There are also restrictions and delays on logistics, such as air cargo
carriers, as well as increased logistics costs due to limited capacity and high
demands for freight forwarders. Similarly, our customers have also experienced,
and could continue to experience, disruptions in their operations, which may
result in reduced, delayed, or canceled orders, and has increased collection
risks, which may adversely affect our results of operations.

The full extent of the impact of the COVID-19 pandemic and the related responses
on our operational and financial performance remains uncertain and will depend
on many factors outside our control, including, without limitation, the duration
and severity of the pandemic, the imposition of protective public safety
measures, and the impact of the pandemic on the global

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economy as a whole and, in particular, demand for our products. Due to these
uncertainties, we cannot reasonably estimate the related impact on us at this
time.

For additional information regarding the risks that we face as a result of the
COVID-19 pandemic, please see Item 1A, Risk Factors, in the Annual Report on
Form 10-K for the year ended June 30, 2021. Further, to the extent the COVID-19
pandemic adversely affects our business and financial results, it also may have
the effect of heightening many of the other risks described in the risk factors
in the Annual Report on Form 10-K for the year ended June 30, 2021 and in our
subsequent filings with the Securities and Exchange Commission.
Results of Operations ($ in millions, except per share data)
The following tables set forth select items from our Condensed Consolidated
Statements of Earnings for the three months ended September 30, 2021 and 2020 ($
in millions):
                                                         Three Months Ended                                 Three Months Ended
                                                         September 30, 2021                                 September 30, 2020
                                                                             % of                                               % of
                                                                           Revenues                                           Revenues
Total revenues                              $            795                      100  %       $            728                      100  %
Cost of goods sold                                       479                       60                       442                       61
Gross margin                                             316                       40                       287                       39
Operating expenses:
Internal research and development                         89                       11                        78                       11
Selling, general and administrative                      132                       17                       107                       15
Interest and other, net                                    5                        1                        42                        6
Earnings before income taxes                              90                       11                        60                        8
Income taxes                                              16                        2                        13                        2
Net earnings                                $             74                        9  %       $             46                        6  %

Diluted earnings per share                  $           0.50                                   $           0.38


Consolidated
Revenues. Revenues for the three months ended September 30, 2021 increased 9% to
$795 million, compared to $728 million for the same period last fiscal year. The
Company realized increased revenues within its product lines for industrial and
communications, semiconductor capital equipment and consumer electronics
markets.
Gross margin. Gross margin for the three months ended September 30, 2021 was
$316 million, or 40% of total revenues, compared to $287 million, or 39% of
total revenues, for the same period last fiscal year. The increase in gross
margin of 40 basis points for the three months ended September 30, 2021 was
driven by higher volume in both segments and improved mix of products sold.
Internal research and development. Internal research and development ("IR&D")
expenses for the three months ended September 30, 2021 were $89 million, or 11%
of revenues, compared to $78 million, or 11% of revenues, for the same period
last fiscal year. The higher IR&D is a result of increased investments in power
electronics and sensing products.
Selling, general and administrative. Selling, general and administrative
("SG&A") expenses for the three months ended September 30, 2021 were $132
million, or 17% of revenues, compared to $107 million, or 15% of revenues, for
the same period last fiscal year. The increase in SG&A as a percentage of
revenue for the three months ended September 30, 2021 compared to the same
period last fiscal year was primarily the result of transaction costs incurred
in the current year related to the pending Coherent acquisition of $12 million,
as compared to $2 million during the same period last fiscal year, primarily
related to the Ascatron acquisition. The other driver of the increase in SG&A is
an increase in stock compensation as a result of the increase in the stock
price.
Interest and other, net. Interest and other, net for the three months ended
September 30, 2021 was expense of $5 million, compared to expense of $42 million
for the same period last fiscal year. Included in interest and other, net, were
interest expense on borrowings, equity earnings from unconsolidated investments,
foreign currency gains and losses, expense of debt issuance costs, and interest
income on excess cash balances. For the three months ended September 30, 2021,
interest and other,
                                       25
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net decreased by $37 million in comparison to the same period last fiscal year,
driven by $25 million of debt extinguishment expense recognized in the prior
year, and a favorable foreign currency fluctuation year over year of
approximately $10 million. There were foreign currency gains of $5 million for
the current three-month period, compared to $5 million of losses for the three
months ended September 30, 2020.
Income taxes. The Company's year-to-date effective income tax rate at
September 30, 2021 was 18%, compared to an effective tax rate of 22% for the
same period last fiscal year. The variations between the Company's effective tax
rate and the U.S. statutory rate of 21% were primarily due to tax rate
differentials between U.S. and foreign jurisdictions.
Segment Reporting
Revenues and operating income for the Company's reportable segments are
discussed below. Operating income differs from net earnings in that operating
income excludes certain operational expenses included in other expense (income)
- net as reported. Management believes operating income to be a useful measure
for investors, as it reflects the results of segment performance over which
management has direct control and is used by management in its evaluation of
segment performance. See Note 13. Segment Reporting, to our unaudited
consolidated financial statements in Part I, Item 1 of this Quarterly Report on
Form 10-Q for further information on the Company's reportable segments and for
the reconciliation of the Company's operating income to net earnings, which is
incorporated herein by reference.
Photonic Solutions ($ in millions)
                                        Three Months Ended
                                           September 30,               % Increase
                                          2021             2020
             Revenues             $      536$ 498            8%
             Operating income     $       57$  50           12%

Revenues for the three months ended September 30, 2021 increased 8% to $536 million, compared to $498 million for the same period last fiscal year. The increase in revenue during the three months ended September 30, 2021 was primarily due to sustained demand for products in the optical communications market, including datacom and telecom products.


Operating income for the three months ended September 30, 2021 increased 12% to
$57 million, compared to operating income of $50 million for the same period
last fiscal year. The increase in operating income was driven by the increase in
volume and improved mix of products sold.
Compound Semiconductors ($ in millions)
                                        Three Months Ended
                                           September 30,               % Increase
                                          2021             2020
             Revenues             $      259$ 230           12%
             Operating income     $       50$  51           (2)%


Revenues for the three months ended September 30, 2021 for Compound
Semiconductors increased 12% to $259 million, compared to revenues of $230
million for the same period last fiscal year. The increase in revenues during
the three months ended September 30, 2021 primarily related to the increase in
product shipments addressing the industrial market, the semiconductor capital
equipment market and the consumer electronics market, with declines in aerospace
and defense.
Operating income for the three months ended September 30, 2021 remained flat
compared to the same period last fiscal year. Investment in IR&D offset higher
volume and improved margins.
Liquidity and Capital Resources
Historically, our primary sources of cash have been from operations, long-term
borrowing, and advance funding from customers. Other sources of cash include
proceeds from the issuance of equity, proceeds received from the exercises of
stock options, and sale of equity investments and businesses. Our historic uses
of cash have been for capital expenditures, investment in research and
development, business acquisitions, payments of principal and interest on
outstanding debt obligations, payments of debt and equity issuance costs to
obtain financing and payments in satisfaction of employees' minimum tax
                                       26
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obligations. Supplemental information pertaining to our sources and uses of cash for the periods indicated is presented as follows: Sources (uses) of cash (millions):

                                                                     Three 

Months Ended Sept 30,

                                                                       2021                 2020
Net cash provided by operating activities                         $         

52 $ 134 Proceeds from exercises of stock options and purchases of stock under employee stock purchase plan

                                           8                  1
Purchases of businesses, net of cash acquired                                -                (36)
Net proceeds from equity issuance                                            -                884
Other items                                                                 (1)                 -

Effect of exchange rate changes on cash and cash equivalents and other items

                                                                 (1)                 2

Payments in satisfaction of employees' minimum tax obligations             (13)                (6)
Payment of dividends                                                       (14)                 -
Payments under long-term borrowings and credit facility                    (16)              (755)
Additions to property, plant & equipment                                   (48)               (34)


Operating activities:
Net cash provided by operating activities was $52 million for the three-months
ended September 30, 2021 compared to $134 million of net cash provided by
operating activities for the same period last fiscal year. The decrease in cash
flows provided by operating activities during the three months ended
September 30, 2021 compared to the same period last fiscal year was primarily
due to increased working capital requirements to accommodate the Company's
current increased business activities.
Investing activities:
Net cash used in investing activities was $48 million for the three months ended
September 30, 2021, compared to net cash used of $70 million for the same period
last fiscal year. Cash used to fund capital expenditures increased by $14
million year over year, to continue to increase capacity to meet the growing
demand for the Company's product portfolio. Net cash used in investing
activities for the three months ended September 30, 2020 was used to fund the
acquisitions of Ascatron AB and Innovion Corporation.
Financing activities:
Net cash used by financing activities was $36 million for the three months ended
September 30, 2021, compared to net cash provided by financing activities of
$123 million for the same period last fiscal year. Cash outflow for the current
period was primarily comprised of payments on the Term A facility and payment of
cash dividends. Net cash provided by financing activities in the prior year
primarily consisted of payment on the Term B facility, offset by proceeds from
the issuance of Common and Preferred shares.
Senior Credit Facilities
The Company currently has Senior Credit Facilities with Bank of America, N.A.,
as Administrative Agent, Swing Line Lender and an L/C Issuer, and the other
lenders party thereto.
The credit agreement governing the Senior Credit Facilities (the "Credit
Agreement") provides for senior secured financing of $2.425 billion in the
aggregate, consisting of
(i)Aggregate principal amount of $1,255 million for a five-year senior secured
first-lien term A loan facility (the "Term A Facility"),
(ii)Aggregate principal amount of $720 million for a seven-year senior secured
term B loan facility (the "Term B Facility" and together with the Term A
Facility, the "Term Loan Facilities"), which was repaid in full during the
quarter ended September 30, 2020, and
(iii)Aggregate principal amount of $450 million for a five-year senior secured
first-lien revolving credit facility (the "Revolving Credit Facility" and
together with the Term Loan Facilities, the "Senior Credit Facilities").
                                       27

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The Credit Agreement also provides for a letter of credit sub-facility not to
exceed $25 million and a swing loan sub-facility initially not to exceed $20
million.
The Term B Facility was repaid in full by the Company in fiscal year 2021.

The Company is obligated to repay the outstanding principal amount of the Term A
Facility in quarterly installments equal to 1.25% of the initial aggregate
principal amount of the Term A Facility, with the remaining outstanding balance
due and payable on the fifth anniversary of September 24, 2019 (the "Finisar
Closing Date").

The Company's obligations under the Senior Credit Facilities are guaranteed by
each of the Company's existing or future direct and indirect domestic
subsidiaries (collectively, the "Guarantors"). Borrowings under the Senior
Credit Facilities are collateralized by a first priority lien in substantially
all of the assets of the Company and the Guarantors, except that no real
property is collateral under the Senior Credit Facilities.

All amounts outstanding under the Senior Credit Facilities become due and
payable 120 days prior to the maturity of the Company's currently outstanding
0.25% Convertible Senior Notes due 2022 (the "II-VI Notes") if (i) the II-VI
Notes remain outstanding, and (ii) the Company has insufficient cash and
borrowing availability to repay the principal amount of the II-VI Notes.

Amounts outstanding under the Senior Credit Facilities bear interest at a rate
per annum equal to an applicable margin over a eurocurrency rate or an
applicable margin over a base rate determined by reference to the highest of (a)
the federal funds rate plus 0.50%, (b) Bank of America, N.A.'s prime rate and
(c) a eurocurrency rate plus 1.00%, in each case as calculated in accordance
with the terms of the Credit Agreement. The applicable interest rate would
increase under certain circumstances relating to events of default. The Company
has entered into an interest rate swap contract to hedge its exposure to
interest rate risk on its variable rate borrowings under the Senior Credit
Facilities. Refer to Note 15 for further information regarding this interest
rate swap.

The Credit Agreement contains customary affirmative and negative covenants with
respect to the Senior Credit Facilities, including limitations with respect to
liens, investments, indebtedness, dividends, mergers and acquisitions,
dispositions of assets and transactions with affiliates. The Company will be
obligated to maintain a consolidated interest coverage ratio (as calculated in
accordance with the terms of the Credit Agreement) as of the end of each fiscal
quarter of not less than 3.00 to 1.00. The Company will be obligated to maintain
a consolidated total net leverage ratio (as calculated in accordance with the
terms of the Credit Agreement) of not greater than (i) 5.00 to 1.00 for the
first four fiscal quarters after the Finisar Closing Date, commencing with the
first full fiscal quarter after the Finisar Closing Date, (ii) 4.50 to 1.00 for
the fifth fiscal quarter through and including the eighth fiscal quarter after
the Finisar Closing Date, and (iii) 4.00 to 1.00 for each subsequent fiscal
quarter. As of September 30, 2021 the Company was in compliance with all
financial covenants under the Credit Agreement.

Additional information regarding the Senior Credit Facilities and certain of the
Company's other indebtedness is set forth in Note 8. Debt to our unaudited
condensed consolidated financial statements in Part 1, Item 1 of this Quarterly
Report on Form 10-Q.

© Edgar Online, source Glimpses

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