Financial Covenants Under the Commitment Line
First written in FY2025. 1 of 3 entries say "Worsened", first in FY2026. Latest entry: FY2026.
Ips moved to the "Worse" side of this theme in 2026, 3 years after the typical company in this theme (2023).
The whole theme swung hardest in 2017: 8 of 54 companies on the "Worse" side.
22 other companies' latest entry also says "Worsened".
- FY2026WorsenedAnnual report
「The newly entered commitment line agreement between the Company and Mizuho Bank, Ltd., with commitment amounts of ¥3,000 million and US$20 million, is subject to the following financial covenants. If any of these covenants is breached, immediate repayment of the relevant debt may be demanded.」
In addition to the previous ¥2 billion commitment line, the commitment line was expanded to ¥3 billion and US$20 million, and financial covenants concerning the maintenance of net assets, operating losses and the net interest-bearing debt/EBITDA ratio were added. The covenants had not been breached as of the end of March 2026. - FY2026-H1Add syndicated loan and financial covenantsAnnual report
「① Principal amount of borrowings under the loan agreements Maximum of approximately ¥12 billion (borrowings in US dollars and yen) ② Repayment term Repayment over 5 years after the borrowing amount is finalized ④ Details of financial covenants ① The amount of net assets on the consolidated balance sheet as of the end of each fiscal year must be maintained at or above 75% of the amount for the same period of the previous year. ② Operating income shown on the consolidated income statement for each fiscal year must not be negative for 2 consecutive fiscal years. ③ The 3-year weighted average of the consolidated net interest-bearing debt/EBITDA ratio as of the end of each fiscal year must be maintained at or below 5.0x.」
Separately from the previously disclosed commitment line, the Company entered into a syndicated loan agreement with a maximum amount of approximately ¥12 billion and disclosed financial covenants concerning the maintenance of net assets, operating losses and the net interest-bearing debt/EBITDA ratio. - FY2025First statedAnnual report
「The ¥2,000 million commitment line facility entered into by the Company with Mizuho Bank, Ltd. is subject to the following financial covenants. If any of these covenants is breached, immediate repayment of the relevant debt may be demanded. ① The amount of net assets must be maintained at or above 75% of the amount of net assets reported for the fiscal year ended March 2024. ② Operating profit must be maintained.」
The Company disclosed that the ¥2,000 million commitment line is subject to financial covenants requiring net assets to be maintained at or above 75% of the reference amount and operating profit to be maintained. The covenants had not been breached as of the end of March 2025.