Avex Inc.
Notice Regarding Conclusion of a Loan Agreement with Financial Covenants by a U.S. Consolidated Subsidiary
U.S. consolidated subsidiary Avex Song Fund 1 LLC plans to enter into a senior secured credit facility agreement for up to USD 50 million. The borrowing ratio will be limited to 60% or less of the music catalog value.
Key Figures
- Principal of Debt: Cap at USD 50 million
- Contract Execution Date: April 2026 (planned)
- Capital Amount: USD 6 million (planned)
AI要約
Overview of Loan Agreement with Financial Covenants
Avex Inc. plans for its U.S. consolidated subsidiary, Avex Song Fund 1 LLC, to enter into a senior secured credit facility agreement of up to USD 50 million with City National Bank in April 2026, for the acquisition of music-related rights and working capital. The borrowing amount will maintain a ratio of 60% or less relative to the value of the music catalog, which may decrease to a maximum of 30% based on revenue conditions after December 31, 2026. Additionally, a fixed cost coverage ratio of 1.1 or higher is required. The collateral consists of shares of subsidiary corporations holding the music-related rights, and the loan is structured as non-recourse.
Future Outlook
The impact of this agreement on the consolidated performance for the fiscal year ending March 2026 is expected to be minimal. Any important information arising in the future will be promptly disclosed. The subsidiary Avex Song Fund 1 LLC is located in Delaware, USA, with a planned capital amount of USD 6 million, and its CEO is Mr. Brandon Silverstein.
