Nippon Seiki Co., Ltd.
Conclusion of a monetary loan agreement with special financial covenants
Plan to enter into a loan agreement of 50,000 million yen with MUFG Bank, Ltd.. No collateral, covenants require that on each fiscal year-end starting from the March 2027 consolidated results there is no pre-tax current profit deficit. Proceeds to be used for funds related to the acquisition of Toyo Electronics shares, with consideration of converting to long-term funds. Impact on future performance is under review, and if significant, additional disclosure will be made.
Key Figures
- Debt principal: 50,000 million yen
- Repayment deadline: 2027-9-28
- Collateral: unsecured
AI要約
Overview
Today, we decided to conclude a loan agreement with financial covenants. The purpose is to raise funds for the acquisition of Toyo Electronics shares, with Mitsubishi UFJ Bank as the lender, principal of 50,000 million yen, no collateral, and a repayment date of September 28, 2027. The covenants require that the ordinary income for each fiscal year-end, starting with the March 2027 fiscal year, does not remain in the red. The impact on future performance is under review, and if significant, additional disclosure will be made.
Outlook and Impact
The borrowed funds are planned to be used for the acquisition of Toyo Electronics shares, with a policy to shift to long-term funding. The impact on consolidated results is currently uncertain and may vary depending on the financial position at the end of the fiscal period. If the financial covenants cannot be met, we will promptly disclose it.
Nippon Seiki Co., Ltd.
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