Risks of Substantial Borrowings, Interest-Rate Fluctuations and Breach of Financial Covenants
First written in FY2017. 7 of 24 entries say "Mitigated", first in FY2018. Latest entry: 2026-10-14.
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
「The Group has entered into borrowing agreements with financial institutions as lenders and has incurred substantial borrowings. Interest-bearing debt as a percentage of total assets was 39.7% for the fiscal year ended February 2026.」
Interest-bearing debt as a percentage of total assets declined from 44.7% in the previous fiscal year to 39.7%, while the net D/E ratio declined from 0.67x to 0.56x. The financial covenants were complied with during the current consolidated fiscal year. - FY2025MitigatedAnnual report
「The Group has entered into borrowing agreements with financial institutions as lenders and has incurred substantial borrowings. Interest-bearing debt as a percentage of total assets was 44.7% for the fiscal year ended February 2025. If market interest rates rise or the Group breaches its financial covenants, this could adversely affect the Group’s ability to continue as a going concern.」
Interest-bearing debt as a percentage of total assets declined from 47.7% in the previous fiscal year to 44.7%, and the financial covenants were complied with. The risks of rising interest rates and covenant breaches continue to be disclosed. - FY2025-H1Update on borrowings and utilization of borrowing facilitiesAnnual report
「Borrowing facilities ① Undrawn amounts and other details under the commitment line agreement Credit limit 15,000 Amount drawn 10,700 Undrawn amount 4,300 ② Undrawn amounts and other details under the overdraft facility agreement Credit limit 9,500 Amount drawn 2,600 Undrawn amount 6,900」
Utilization of borrowing facilities at the end of August 2024 was updated. The amount drawn under the commitment line was ¥1,070 million, and the amount drawn under the overdraft facility was ¥260 million. Total borrowings were ¥5,304.0 million. - FY2025-Q1Update on borrowings and utilization of borrowing facilitiesAnnual report
「Borrowing facilities ① Undrawn amounts and other details under the commitment line agreement Credit limit 15,000 Amount drawn 11,200 Undrawn amount 3,800 ② Undrawn amounts and other details under the overdraft facility agreement Credit limit 8,500 Amount drawn 2,100 Undrawn amount 6,400」
Total borrowings at the end of the first quarter were ¥5,478.7 million. The commitment line had a credit limit of ¥1,500 million and an amount drawn of ¥1,120 million, while the overdraft facility had a credit limit of ¥850 million and an amount drawn of ¥210 million. The status of borrowings and available facilities was updated. - FY2024Updates to borrowing balances and available facilitiesAnnual report
「The Group has entered into borrowing agreements with financial institutions as lenders and has incurred substantial borrowings. Interest-bearing debt as a percentage of total assets was 47.7% for the fiscal year ended February 2024. If market interest rates rise or the Group breaches its financial covenants, this could adversely affect the Group’s ability to continue as a going concern.」
Interest-bearing debt as a percentage of total assets was 47.7%, a slight increase from 47.6% in the previous fiscal year. Total borrowings were ¥5,623.4 million, the amount drawn under the commitment line was ¥1,200 million, and the amount drawn under the overdraft facility was ¥200 million. The financial covenants were complied with. - FY2024-Q3Update on borrowings and utilization of borrowing facilitiesAnnual report
「Credit limit 15,000 15,000 Drawn amount 9,200 11,200 Undrawn amount 5,800 3,800」
Total borrowings at the end of the third quarter were ¥56,417 million. The commitment line's credit limit remained at ¥15 billion, while the drawn amount increased from ¥9.2 billion to ¥11.2 billion. The drawn amount under the overdraft also increased from ¥400 million to ¥2.2 billion. - FY2024-Q2Update on borrowings and utilization of borrowing facilitiesAnnual report
「Credit limit 15,000 15,000 Drawn amount 9,200 10,200 Undrawn amount 5,800 4,800」
Total borrowings at the end of the second quarter increased from ¥54,821 million to ¥54,967 million. The commitment line's credit limit remained at ¥15 billion, while the drawn amount increased from ¥9.2 billion to ¥10.2 billion. - FY2024-Q1Refinancing and updates to borrowing balancesAnnual report
「For the purpose of refinancing long-term borrowings, the Company drew down funds on 30 June 2023 under a loan agreement with Development Bank of Japan Inc. and repaid borrowings under the existing loan agreement on the same date.」
Refinancing of ¥4 billion and repayment of existing borrowings were carried out. Total borrowings at the end of May 2023 were ¥54,877 million, and awareness of the risks related to floating interest rates and financial covenants continues. - FY2023MitigatedAnnual report
「Our group has entered into borrowing agreements with financial institutions as lenders and has substantial borrowings. Its interest-bearing debt dependency ratio was 47.6% for the fiscal year ended February 2023. If market interest rates rise or the group breaches its financial covenants, this could adversely affect its ability to continue as a going concern.」
The interest-bearing debt dependency ratio declined from 54.2% in the previous fiscal year to 47.6%, and the group complied with its financial covenants during the consolidated fiscal year. The risks themselves associated with rising interest rates and breaches of financial covenants continue. - FY2023-Q3Refinancing and updates to borrowing balances and facilitiesAnnual report
「Total borrowings at the end of the third quarter of the current consolidated fiscal year were ¥55,668 million, down from ¥59,452 million at the end of the previous consolidated fiscal year. On 30 November 2022, the company borrowed ¥20,000 million from 8 domestic financial institutions to refinance long-term borrowings and entered into agreements containing financial covenants.」
While total borrowings declined from ¥59,452 million to ¥55,668 million, the ¥20 billion refinancing agreement and ¥11.5 billion commitment line are subject to financial covenants requiring maintenance of consolidated net assets and avoidance of consecutive losses. - FY2023-Q2Update on borrowing balances and facilitiesAnnual report
「Borrowings (non-current) Long-term borrowings 17,976 Total 56,523」
Total borrowings at the end of the second quarter were ¥56,523 million, down from ¥59,452 million at the end of the previous fiscal year. Drawn amounts under the commitment line and overdraft also declined, updating the borrowing exposure profile. - FY2023-Q1Update on borrowing balances and facilitiesAnnual report
「End of the first quarter of the current consolidated fiscal year 31 May 2022 Borrowings (current) Short-term borrowings 6,600 Current portion of long-term borrowings 32,264 Long-term borrowings 21,973 Total 60,837」
Total borrowings increased from ¥59,452 million at the end of February 2022 to ¥60,837 million at the end of May 2022. The limits and drawn amounts of the commitment line and overdraft were also updated. - FY2022-Q3Update on borrowing balances and facilitiesAnnual report
「Total 63,142 61,867」
Total borrowings declined from ¥63,142 million at the end of the previous consolidated fiscal year to ¥61,867 million at the end of the third quarter. The spread on floating-rate borrowings ranged from 0.11% to 0.90%, and the composition of the borrowing facilities was also updated. - FY2022-Q2Update on borrowing balances and facilitiesAnnual report
「Total 63,142 63,180」
Total borrowings increased from ¥63,142 million at the end of the previous consolidated fiscal year to ¥63,180 million at the end of the second quarter. The credit limit under the commitment line declined from ¥20 billion to ¥10 billion, while the overdraft credit limit increased from ¥3.5 billion to ¥7.5 billion. - FY2022-Q1Refinancing and updates to borrowing balances and contract termsAnnual report
「For the purpose of refinancing long-term borrowings, the company drew loans on 31 March 2021 under loan agreements with 6 domestic financial institutions and, on the same date, repaid borrowings under existing loan agreements.」
Following new refinancing, the borrowing balance increased from ¥63,142 million at the end of the previous fiscal year to ¥65,993 million at the end of the first quarter. Financial covenants concerning repayment maturities, maintenance of consolidated net assets and avoidance of consecutive losses also remain in place. - FY2021MitigatedAnnual report
「Our group has entered into borrowing agreements with financial institutions as lenders and has substantial borrowings. Its interest-bearing debt dependency ratio was 54.2% for the fiscal year ended February 2021. If market interest rates rise or the group breaches its financial covenants, this could adversely affect its ability to continue as a going concern.」
The interest-bearing debt dependency ratio declined from 56.0% in the previous fiscal year to 54.2%. The risks themselves associated with rising floating interest rates and breaches of financial covenants continue to be disclosed. - FY2021-Q1WorsenedAnnual report
「Borrowing facilities ① Undrawn balances and other information related to borrowings under the commitment line agreement (Unit: ¥ million) Previous consolidated fiscal year First quarter of the current consolidated fiscal year 29 February 2020 31 May 2020 Credit limit 10,000 20,000 Drawn amount 5,600 8,200 Undrawn amount 4,400 11,800」
The credit limit under the commitment line increased from ¥10 billion to ¥20 billion, while the drawn amount increased from ¥5.6 billion to ¥8.2 billion, expanding the funding exposure. - FY2020WorsenedAnnual report
「Our group has entered into borrowing agreements with financial institutions as lenders and has substantial borrowings. Its interest-bearing debt dependency ratio was 56.0% for the fiscal year ended February 2020 (Note 1). If market interest rates rise, the floating-rate portion of interest on borrowings could affect our group's operating performance.」
The interest-bearing debt dependency ratio increased from 51.3% in the previous fiscal year to 56.0%, and the risks of rising floating interest rates and financial covenant breaches continue to be disclosed. - FY2019MitigatedAnnual report
「Our group has entered into borrowing agreements with financial institutions as lenders and has substantial borrowings. Its interest-bearing debt dependency ratio was 51.3% for the fiscal year ended February 2019 (Note 1).」
The interest-bearing debt dependency ratio declined from 54.3% in the previous fiscal year to 51.3%, and the disclosure states that the group complied with the financial covenants following refinancing. - FY2018MitigatedAnnual report
「Our group has entered into borrowing agreements with financial institutions as lenders and has substantial borrowings. Its interest-bearing debt dependency ratio was 54.3% for the fiscal year ended February 2018 (Note 1). … Our group complied with the financial covenants during the consolidated fiscal year.」
The interest-bearing debt dependency ratio declined from 56.6% to 54.3%, and the disclosure states that the group complied with its financial covenants after carrying out multiple refinancing transactions. - FY2018-Q3Refinancing and updates to financial covenantsAnnual report
「On 30 November 2017, our company prepaid in full the long-term borrowings under the existing senior facilities agreement, amounting to ¥48,625 million, entered into a loan agreement and a commitment line agreement with Mizuho Bank, Ltd. as agent, and entered into separate new loan agreements with 7 domestic financial institutions. The financial covenants must be complied with. The principal financial covenants are as follows: a) consolidated net assets must exceed 75% of the higher of the amount at the end of the fiscal year ended February 2017 or at the end of the immediately preceding fiscal year; and b) the company must not report a consolidated operating loss, consolidated loss before income taxes or consolidated net loss for 2 consecutive fiscal years.」
Following the comprehensive refinancing of the borrowing agreements, the new contracts included financial covenants requiring consolidated net assets to be maintained above 75% of the reference amount and losses to be avoided for 2 consecutive fiscal years, among other requirements. - FY2017First statedAnnual report
「Our group has entered into borrowing agreements with financial institutions as lenders and has substantial borrowings. Its interest-bearing debt dependency ratio was 56.6% for the fiscal year ended February 2017 (Note 1).」
The disclosure explicitly identifies the interest-bearing debt dependency ratio of 56.6%, floating interest rates, financial covenants and the impact on liquidity of an event of default.