Risk of Breaching Financial Covenants Attached to M&A Financing
First written in FY2025-H1. 1 of 2 entries say "Restated". Latest entry: FY2025.
The whole theme swung hardest in 2025: 23 of 78 companies on the "Worse" side.
33 other companies' latest entry also says "Restated".
- FY2025RestatedAnnual report
「The financial covenants attached to this agreement are as follows: At the end of each fiscal year, the amount of interest-bearing debt, excluding bonds with subscription rights to shares, including convertible bonds, on the consolidated balance sheet must be divided by EBITDA on the consolidated income statement for that fiscal year, and the resulting ratio must be maintained at between 0 and 5, inclusive.」
The company disclosed an M&A financing borrowing balance of ¥649 million at the end of the period and the post-drawdown financial covenant requiring interest-bearing debt/EBITDA to be maintained at between 0 and 5, inclusive. No breach was reported. - FY2025-H1First statedAnnual report
「If the financial covenants are breached due to weak business performance or other factors, there may be effects such as an increase in borrowing interest rates.」
Financial covenants were attached to the borrowing agreement for M&A financing, and the newly disclosed risk was an increase in borrowing interest rates if the covenants are breached. The covenants require the ratio of interest-bearing debt to EBITDA to be maintained at between 0 and 5, inclusive.