Financial Covenants, Interest Rate Fluctuations and Liquidity in Syndicated Loans
First written in FY2016. 14 of 26 entries say "Mitigated", first in FY2018-Q2. Latest entry: FY2026.
Seikitokyu Kogyo moved to the "Worse" side of this theme in 2021, 2 years before the typical company in this theme (2023).
The whole theme swung hardest in 2017: 8 of 54 companies on the "Worse" side.
52 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「1. Agreement date: 25 November 2025 2. Lender type: City banks, trust banks 3. Facility amount: ¥5,000 million 4. Facility term: From 28 November 2025 to 29 November 2030 (5 years)」
The company entered into a 5-year term loan agreement and maintained the term loan balance at ¥5,000 million. Interest-bearing debt decreased from ¥6,706 million at the end of the previous fiscal year to ¥6,605 million. - FY2026-H1WorsenedAnnual report
「As of the end of the interim consolidated accounting period, total liabilities were ¥37,333 million, a decrease of ¥3,530 million from the end of the previous consolidated fiscal year. Current liabilities decreased by ¥3,543 million, mainly due to a decrease in trade payables, while non-current liabilities increased by ¥13 million.」
The increase in short-term borrowings exceeded the repayment of long-term borrowings, increasing total borrowings by ¥46 million from the end of the previous consolidated fiscal year. Borrowing exposure related to financial covenants, interest rates and liquidity increased slightly. - FY2025-H1WorsenedAnnual report
「Short-term borrowings 106 203 Long-term borrowings 6,700 6,650」
The increase in short-term borrowings exceeded the repayment of long-term borrowings, increasing total borrowings by ¥47 million from the end of the previous consolidated fiscal year. Borrowing exposure related to financial covenants, interest rates and liquidity increased slightly. - FY2024MitigatedAnnual report
「The balance of term loans at the end of the current consolidated fiscal year was as follows. ¥5,000 million Cash and cash equivalents stood at ¥13,440 million as of March 2024, compared with ¥8,173 million at the end of the previous consolidated fiscal year, while interest-bearing debt stood at ¥6,806 million, compared with ¥6,906 million at the end of the previous consolidated fiscal year.」
The syndicated loan term loan balance was maintained at ¥5,000 million, while interest-bearing debt decreased slightly from ¥6,906 million to ¥6,806 million. - FY2024-Q3WorsenedAnnual report
「Short-term borrowings 106 203 Long-term borrowings 6,800 6,725」
The combined balance of short-term and long-term borrowings increased by ¥22 million, from ¥6,906 million at the end of March 2023 to ¥6,928 million at the end of December 2023. Borrowing exposure related to financial covenants, interest rates and liquidity increased slightly. - FY2024-Q2WorsenedAnnual report
「Short-term borrowings 106 203 Long-term borrowings 6,800 6,750」
The combined balance of short-term and long-term borrowings increased from ¥6,906 million at the end of the previous consolidated fiscal year to ¥6,953 million. Borrowing exposure related to financial covenants, interest rates and liquidity was slightly above the level at the end of the previous fiscal year. - FY2024-Q1WorsenedAnnual report
「Short-term borrowings 106 203 Long-term borrowings 6,800 6,775」
The increase in short-term borrowings exceeded the decrease in long-term borrowings, increasing total borrowings by ¥72 million from ¥6,906 million to ¥6,978 million. Borrowing exposure related to financial covenants, interest rates and liquidity increased slightly. - FY2023-Q3WorsenedAnnual report
「Short-term borrowings 107 203 Long-term borrowings 6,900 6,825」
The combined balance of short-term and long-term borrowings increased from ¥7,007 million at the end of the previous consolidated fiscal year to ¥7,028 million, and borrowing exposure related to financial covenants, interest rates and liquidity exceeded the level at the end of the previous fiscal year. - FY2023-Q2WorsenedAnnual report
「Net change in short-term borrowings (△ indicates a decrease) 95 Proceeds from repayment of long-term borrowings △50」
The net increase in short-term borrowings exceeded the repayment of long-term borrowings, increasing interest-bearing debt from the end of the previous fiscal year. Borrowing exposure related to financial covenants, interest rates and liquidity increased slightly. - FY2022WorsenedAnnual report
「In December 2020, the Company entered into a syndicated loan agreement arranged by MUFG Bank, Ltd. The syndicated loan agreement contains the following financial covenants.」
The term loan balance under the syndicated loan was ¥5,000 million, and interest-bearing debt, including long-term borrowings and other items, was ¥7,007 million. The company disclosed financial covenants including maintaining net assets, avoiding losses for 2 consecutive fiscal years, and keeping the total coverage ratio at 15.0 or below. - FY2021-Q3WorsenedAnnual report
「As of the end of the third quarter of the current consolidated accounting period, total liabilities were ¥39,878 million, an increase of ¥1,855 million from the end of the previous consolidated fiscal year. Current liabilities decreased by ¥2,500 million, mainly due to decreases in trade payables and advances received on uncompleted construction contracts, while non-current liabilities increased by ¥4,355 million, mainly due to an increase in long-term borrowings.」
Long-term borrowings increased from ¥300 million at the end of the previous consolidated fiscal year to ¥5,000 million, increasing financial exposure associated with the syndicated loan and other borrowings. - FY2021-Q2MitigatedAnnual report
「As of the end of the second quarter of the current consolidated accounting period, total liabilities were ¥33,811 million, a decrease of ¥4,211 million from the end of the previous consolidated fiscal year. Current liabilities decreased by ¥3,821 million, mainly due to a decrease in trade payables, while non-current liabilities decreased by ¥390 million, mainly due to decreases in long-term borrowings and liabilities related to retirement benefits. During the six months ended the second quarter of the current consolidated fiscal year, cash flow from financing activities decreased by ¥2,106 million, reflecting payment of the year-end dividend and partial repayment of borrowings, compared with a decrease of ¥2,312 million in the same period of the previous year.」
Non-current liabilities and total liabilities decreased due to partial repayment of borrowings and other factors, reducing borrowing exposure related to financial covenants, interest rates and liquidity. - FY2021-Q1MitigatedAnnual report
「As of the end of the first quarter of the current consolidated accounting period, total liabilities were ¥35,944 million, a decrease of ¥2,078 million from the end of the previous consolidated fiscal year. Current liabilities decreased by ¥1,815 million, mainly due to a decrease in trade payables, while non-current liabilities decreased by ¥263 million, mainly due to partial repayment of borrowings.」
Non-current liabilities and total liabilities decreased due to partial repayment of borrowings and other factors, reducing borrowing exposure related to financial covenants, interest rates and liquidity. - FY2020MitigatedAnnual report
「The balance of term loans at the end of the current consolidated fiscal year was as follows.」
The term loan balance decreased from ¥2,396 million at the end of the previous fiscal year to ¥665 million, reducing borrowing exposure related to financial covenants, interest rates and liquidity. - FY2020-Q3MitigatedAnnual report
「Current liabilities increased by ¥3,163 million, mainly due to an increase in advances received on uncompleted construction contracts, while non-current liabilities decreased by ¥704 million, mainly due to decreases in long-term borrowings and liabilities related to retirement benefits.」
Long-term borrowings decreased from ¥665 million at the end of the previous consolidated fiscal year to ¥300 million, reducing the financial exposure associated with outstanding borrowings. - FY2020-Q2MitigatedAnnual report
「During the six months ended the second quarter of the current consolidated fiscal year, cash flow from financing activities decreased by ¥2,312 million, reflecting payment of the year-end dividend and partial repayment of borrowings, compared with a decrease of ¥805 million in the same period of the previous year.」
After partial repayment of borrowings, long-term borrowings decreased from ¥665 million at the end of the previous consolidated fiscal year to ¥450 million. Financial exposure associated with outstanding borrowings continued to decline. - FY2020-Q1MitigatedAnnual report
「As of the end of the first quarter of the current consolidated accounting period, total liabilities were ¥36,221 million, a decrease of ¥3,140 million from the end of the previous consolidated fiscal year. Current liabilities decreased by ¥2,797 million, mainly due to decreases in trade payables and the provision for losses related to the Antimonopoly Act, while non-current liabilities decreased by ¥343 million, mainly due to partial repayment of borrowings.」
Non-current liabilities and total liabilities decreased due to partial repayment of borrowings and other factors, reducing the financial exposure associated with outstanding borrowings. - FY2019MitigatedAnnual report
「Cash flows from financing activities resulted in a decrease of ¥2,005 million in funds, compared with a decrease of ¥1,684 million in the previous consolidated fiscal year, mainly due to repayment of long-term borrowings. Although the payment of ¥403 million in dividends from surplus and other factors reduced shareholders' equity, net income attributable to owners of the parent of ¥3,480 million and changes in the accumulated adjustment amount related to retirement benefits resulted in shareholders' equity of ¥31,543 million at the end of the current consolidated fiscal year, compared with ¥28,098 million at the end of the previous consolidated fiscal year. Interest-bearing debt stood at ¥2,404 million, compared with ¥4,008 million at the end of the previous consolidated fiscal year.」
Repayment of long-term borrowings progressed, reducing interest-bearing debt from ¥4,008 million to ¥2,404 million. Shareholders' equity increased, while borrowings related to financial covenants and liquidity continued to decline. - FY2019-Q2MitigatedAnnual report
「During the six months ended the second quarter of the current consolidated fiscal year, cash flow from financing activities decreased by ¥805 million, reflecting payment of the year-end dividend and partial repayment of borrowings, compared with a decrease of ¥1,088 million in the same period of the previous year.」
After partial repayment of borrowings, long-term borrowings decreased from ¥3,000 million to ¥2,500 million, and outstanding borrowings continued to decline. - FY2018-Q3MitigatedAnnual report
「Current liabilities increased by ¥4,517 million, mainly due to an increase in advances received on uncompleted construction contracts and the recognition of a provision for losses related to the Antimonopoly Act. Non-current liabilities decreased by ¥1,811 million, mainly due to decreases in long-term borrowings and liabilities related to retirement benefits.」
Long-term borrowings decreased from ¥4,000 million at the end of the previous consolidated fiscal year to ¥3,000 million, as partial repayment and reduction of outstanding borrowings continued. - FY2018-Q2MitigatedAnnual report
「Non-current liabilities decreased by ¥1,220 million, mainly due to decreases in long-term borrowings and liabilities related to retirement benefits.」
Long-term borrowings decreased from ¥4,000 million to ¥3,500 million, reducing the borrowings that had increased at the end of the previous fiscal year through partial repayment. - FY2017WorsenedAnnual report
「In December 2016, the Company entered into a syndicated loan agreement arranged by The Bank of Tokyo-Mitsubishi UFJ, Ltd. The outstanding balance was ¥5,000 million as of the end of the consolidated fiscal year.」
The company disclosed its syndicated loan agreement and financial covenants. The outstanding borrowings increased from ¥2,500 million at the end of the previous fiscal year to ¥5,000 million. - FY2016First statedAnnual report
「To establish a stable financing structure, we have entered into a syndicated loan agreement with several financial institutions. The agreement contains certain financial covenants, and if we breach these conditions, we may lose the benefit of time for repayment and be required to repay the borrowings in full.」
The disclosure covers financial covenants, including maintaining net assets, recording losses and keeping the total leverage ratio at 15.0 or below, as well as interest rate risk arising from variable interest rates.