Repayment and Refinancing Risk for Convertible Bonds with Stock Acquisition Rights
First written in FY2020. 4 of 5 entries say "Mitigated", first in FY2021-Q1. Latest entry: FY2022-Q3.
1 other company's latest entry also says "Mitigated".
- FY2022-Q3MitigatedAnnual report
「Based on a resolution of the Board of Directors meeting held on 15 June 2022, the company purchased and cancelled on 6 July 2022 the entire outstanding balance of the Third Series Unsecured Convertible Bonds with Stock Acquisition Rights issued on 6 July 2020, which were subject to pari passu ranking provisions limited to convertible bonds with stock acquisition rights.」
The entire outstanding balance of ¥1,500 million of the Third Series Convertible Bonds with Stock Acquisition Rights, for which redemption or refinancing on 6 July 2023 had been identified as a possibility, was purchased and cancelled before maturity, reducing the related redemption risk. - FY2021MitigatedAnnual report
「The First Series Convertible Bonds with Stock Acquisition Rights (par value: ¥4.5 billion) were redeemed in a lump sum in October 2020, their redemption month, and the Second Series Convertible Bonds with Stock Acquisition Rights (par value: ¥1.5 billion) were fully converted. If conversion into shares does not progress for the Third Series Convertible Bonds with Stock Acquisition Rights (par value: ¥1.5 billion), the outstanding bonds with stock acquisition rights will need to be redeemed in a lump sum at par on the redemption date, 6 July 2023. The company may need to take measures such as refinancing, including through other financing methods.」
Following the redemption of the ¥4.5 billion First Series Bonds, the ¥1.5 billion Second Series Bonds were fully converted, reducing the bonds subject to redemption or refinancing to the ¥1.5 billion Third Series Bonds. - FY2021-Q3MitigatedAnnual report
「Redemption of ¥4,500 million of convertible bonds with stock acquisition rights due for redemption within 1 year and exercise of stock acquisition rights on convertible bonds with stock acquisition rights reduced the balance by ¥607 million.」
The ¥4,500 million of convertible bonds with stock acquisition rights that had been due for redemption within 1 year was redeemed, and the balance was further reduced through the exercise of stock acquisition rights and other transactions. - FY2021-Q1MitigatedAnnual report
「Convertible bonds with stock acquisition rights due for redemption within 1 year 4,500,000 - Convertible bonds with stock acquisition rights 3,027,500 3,025,000」
The ¥4,500 million of convertible bonds with stock acquisition rights due for redemption within 1 year was redeemed, leaving ¥3,025 million of convertible bonds with stock acquisition rights as fixed liabilities. - FY2020First statedAnnual report
「If conversion into shares does not progress for the Second Series Convertible Bonds with Stock Acquisition Rights (par value: ¥1.5 billion) and the Third Series Convertible Bonds with Stock Acquisition Rights (par value: ¥1.5 billion), the outstanding bonds with stock acquisition rights will need to be redeemed in a lump sum at par on the redemption date, 6 July 2023. The company may need to take measures such as refinancing, including through other financing methods.」
The company first explicitly identified as a risk the possibility of a lump-sum redemption on 6 July 2023 and refinancing if conversion into shares does not progress for the outstanding ¥3 billion of convertible bonds with stock acquisition rights.