Tokyu Corporation
Supplementary Explanation Material Regarding Debt-Type Preferred Stock
Tokyu Corporation aims to enhance its capital through the issuance of debt-type preferred stock, considering a capital procurement method that respects common shareholders without voting rights.
Key Figures
- Accounting Capital Nature: Recorded as equity in full amount of issuance
- Credit Rating Capital Nature: 50% treated as equity, 50% as debt
- Dividend: Fixed dividend for approximately 5 years after issuance, followed by variable dividends
AI要約
Characteristics of Debt-Type Preferred Stock
Debt-type preferred stock is classified as stock under the Companies Act, and its issuance can expand capital both in accounting terms and credit rating. It does not have voting rights or conversion rights to common stock, and is considered a capital procurement method that respects common shareholders. Fixed dividends are paid for approximately 5 years post-issuance, after which dividends become variable. An application for listing on the Tokyo Stock Exchange Prime Market is planned.
Effects and Impact on Financial Indicators
Debt-type preferred stock has limited impact on ROE and EPS related to common stock. Priority dividends are paid before common stock dividends and are non-participating and cumulative. It also contributes to the improvement of financial soundness indicators such as D/E ratio.
Tokyu Corporation
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