Risk of Breaching Financial Covenants Attached to Convertible Bonds with Stock Acquisition Rights
First written in FY2025. 1 of 2 entries say "Worsened", first in FY2026. Latest entry: FY2026.
Renaissance moved to the "Worse" side of this theme in 2026, 2 years after the typical company in this theme (2024).
0 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「The details of the loan agreements with financial covenants entered into by the company are as follows: “27 February 2026 29 February 2036 862,000”」
The company added a loan agreement with financial covenants and disclosed a loan contracted on 27 February 2026 with an outstanding balance of ¥862 million at the end of the period. The agreement includes conditions such as maintaining net assets at 75% or more and not recording ordinary losses for 2 consecutive fiscal years. - FY2025First statedAnnual report
「If ordinary profit or loss reported in the consolidated full-year income statements for 2 consecutive fiscal years from the fiscal year ended March 2023 onward is a loss, or if total consolidated net assets reported in the consolidated full-year balance sheets at the end of any fiscal year from the fiscal year ended March 2023 onward fall below 75% of total consolidated net assets reported in the consolidated full-year balance sheet at the end of the immediately preceding fiscal year.」
The company disclosed financial covenants on convertible bonds with stock acquisition rights, under which 2 consecutive fiscal years of ordinary losses or net assets below 75% constitute events of default, as well as the bondholders’ right to demand early redemption.