Significant Borrowings, Financial Covenants, and Interest Rate Movements
First written in FY2018. 16 of 28 entries say "Mitigated", first in FY2019-Q3. Latest entry: FY2026.
The whole theme swung hardest in 2017: 3 of 11 companies on the "Worse" side.
8 other companies' latest entry also says "Mitigated".
- FY2026MitigatedAnnual report
「Non-current liabilities increased by ¥90 million from the end of the previous consolidated fiscal year to ¥13,483 million. This was mainly due to a ¥692 million decrease in borrowings, a ¥666 million increase in lease liabilities, a ¥129 million increase in provisions and other factors. Variable-rate borrowings within the Group's borrowings are exposed to the risk of fluctuations in market interest rates. To avoid fluctuations in interest payable and fix the interest payable, the Group uses derivative transactions, specifically interest-rate swaps, as hedging instruments.」
Borrowings decreased by ¥692 million from the end of the previous fiscal year, while the use of interest-rate swaps to fix rates has continued. The reduction in outstanding borrowings and measures to address interest-rate fluctuation risk were confirmed. - FY2026-H1MitigatedAnnual report
「This was mainly due to a ¥346 million decrease in borrowings, a ¥169 million increase in lease liabilities and other factors.」
Borrowings in non-current liabilities decreased by ¥346 million from the end of the previous consolidated fiscal year, and the reduction in outstanding borrowings continued during the interim period. - FY2025New Borrowing Increased Balance, with Interest Rate HedgingAnnual report
「Borrowings at the end of the current consolidated fiscal year amounted to ¥8,822 million. The Borrower also entered into a loan agreement with MUFG Bank, Ltd. for a total amount of ¥2,000 million and drew down the full ¥2,000 million. The Borrower entered into an interest-rate swap contract with MUFG Bank, Ltd. for scheduled repayments to mitigate interest-rate fluctuation risk.」
Outstanding borrowings increased from ¥8,214 million at the end of the previous fiscal year to ¥8,822 million, and ¥2,000 million in new borrowings was drawn down. Meanwhile, an interest-rate swap was entered into for scheduled repayments to address interest-rate fluctuation risk. - FY2025-H1New Borrowing Combined with Interest Rate HedgingAnnual report
「Cash used in financing activities amounted to ¥479 million, compared with ¥2,439 million used in the same period of the previous year. This was mainly because cash inflows, including ¥2,000 million in proceeds from long-term borrowings, were offset by cash outflows, including ¥1,506 million in repayments of lease liabilities. In December 2024, the Borrower entered into an interest-rate and currency swap contract covering ¥2,975 million of the above loan agreement to fix the interest payable.」
While raising ¥2,000 million in long-term borrowings, the Borrower entered into an interest-rate and currency swap contract covering ¥2,975 million of existing borrowings to fix the interest payable. The disclosure addresses both the increase in outstanding borrowings and the response to interest-rate fluctuations. - FY2024Borrowings Reduced, but Credit Facility Ended and New Fixed-Rate Borrowing IntroducedAnnual report
「Borrowings 8,214 The agreement ended on 31 July 2024. For details, please refer to "V. Financial Information, 1. Consolidated Financial Statements, Notes to the Consolidated Financial Statements, 37. Subsequent Events." On the same date, 31 July 2024, the Borrower entered into a loan agreement with MUFG Bank, Ltd. for a total amount of ¥2,000 million.」
Outstanding borrowings decreased from ¥9,407 million at the end of the previous fiscal year to ¥8,214 million, and sensitivity to interest-rate increases also improved. Meanwhile, the ¥4,000 million overdraft and commitment line agreement ended on 31 July 2024, and on the same date the Company entered into a new loan agreement totaling ¥2,000 million, bearing interest at 1.13% and maturing on 31 July 2029. - FY2024-Q3MitigatedAnnual report
「Current liabilities increased by ¥12 million from the end of the previous consolidated fiscal year to ¥6,621 million. This was mainly due to a ¥400 million decrease in borrowings, a ¥240 million increase in other current liabilities, a ¥201 million increase in lease liabilities and other factors. Non-current liabilities decreased by ¥514 million from the end of the previous consolidated fiscal year to ¥11,110 million. This was mainly due to a ¥619 million decrease in borrowings and other factors.」
Borrowings in current liabilities decreased by ¥400 million and borrowings in non-current liabilities decreased by ¥619 million, and the reduction in outstanding borrowings has continued. - FY2024-Q2MitigatedAnnual report
「Current liabilities decreased by ¥165 million from the end of the previous consolidated fiscal year to ¥6,443 million. This was mainly due to a ¥50 million increase in trade and other payables, a ¥400 million decrease in borrowings, a ¥67 million increase in other financial liabilities and other factors. Non-current liabilities decreased by ¥444 million from the end of the previous consolidated fiscal year to ¥11,180 million. This was mainly due to a ¥446 million decrease in borrowings and other factors.」
From the end of the previous fiscal year, borrowings in current liabilities decreased by ¥400 million and borrowings in non-current liabilities decreased by ¥446 million, advancing the reduction in outstanding borrowings. - FY2023MitigatedAnnual report
「Borrowings 10,147 9,407 Risk reduction through changes to the financial covenants and conversion of some borrowings to fixed-rate loans」
Outstanding borrowings decreased from ¥10,147 million at the end of the previous fiscal year to ¥9,407 million. In addition to changes to the repayment maturity and financial covenants, measures to reduce interest-rate risk by converting some borrowings to fixed rates were also disclosed. - FY2023-Q3Repayment Maturity Extended and Financial Conditions ResetAnnual report
「With respect to the loan agreement entered into on 26 March 2019 by the Company's subsidiary QB Net Co., Ltd. (the "Borrower") and the Company, the Borrower's parent company, with MUFG Bank, Ltd. acting as arranger and agent, the Company entered into an amendment agreement dated 28 March 2023 to stabilize its cash flow.」
An amendment agreement was entered into for existing borrowings of ¥8,625 million, extending the repayment maturity to 30 March 2029. Meanwhile, the net debt-to-EBITDA ratio covenant was removed and new financial covenants were established, including consolidated net assets of at least ¥9,110 million. - FY2023-Q2MitigatedAnnual report
「Non-current liabilities decreased by ¥360 million from the end of the previous consolidated fiscal year to ¥11,647 million. This was mainly due to a ¥343 million decrease in borrowings, a ¥21 million decrease in lease liabilities and other factors.」
Borrowings decreased by ¥343 million, and the reduction in outstanding borrowings has continued. - FY2023-Q1MitigatedAnnual report
「This was mainly due to a ¥171 million decrease in borrowings, a ¥97 million decrease in lease liabilities and other factors.」
Borrowings included in non-current liabilities decreased by ¥171 million, and the reduction in outstanding borrowings has continued. - FY2022MaterialisedAnnual report
「The Group was in breach of the financial covenants in both the previous consolidated fiscal year and the current consolidated fiscal year, but had agreed in advance with the lending financial institutions that they would not demand acceleration as a result of the breaches.」
The Group was confirmed to have breached the financial covenants in the current fiscal year as well. Meanwhile, outstanding borrowings decreased from ¥12,843 million to ¥10,147 million, and an agreement not to demand acceleration was also disclosed. - FY2022-Q3MitigatedAnnual report
「Current liabilities decreased by ¥709 million from the end of the previous consolidated fiscal year to ¥6,990 million. This was mainly due to a ¥989 million decrease in borrowings, a ¥224 million increase in current income taxes payable and other factors. Non-current liabilities decreased by ¥487 million from the end of the previous consolidated fiscal year to ¥12,290 million. This was mainly due to a ¥514 million decrease in borrowings, a ¥26 million increase in provisions and other factors.」
Borrowings in current and non-current liabilities decreased by ¥989 million and ¥514 million, respectively, and the reduction in outstanding borrowings has continued. - FY2022-Q2MitigatedAnnual report
「Non-current liabilities decreased by ¥537 million from the end of the previous consolidated fiscal year to ¥12,240 million. This was mainly due to a ¥343 million decrease in borrowings, a ¥219 million decrease in lease liabilities and other factors.」
Borrowings included in non-current liabilities decreased by ¥343 million, and the reduction in outstanding borrowings has continued. - FY2022-Q1MitigatedAnnual report
「This was mainly due to a ¥171 million decrease in borrowings, a ¥115 million decrease in lease liabilities and other factors.」
At the end of the first quarter, borrowings included in non-current liabilities had decreased by ¥171 million, and the reduction in outstanding borrowings had continued from the end of the previous consolidated fiscal year. No change was indicated to the previous period's disclosure regarding the breach of the financial covenants. - FY2021MaterialisedAnnual report
「The Group was in breach of the financial covenants in both the previous consolidated fiscal year and the current consolidated fiscal year, but had agreed in advance with the lending financial institutions that they would not demand acceleration as a result of the breaches.」
The Group was in breach of the financial covenants in both the previous and current consolidated fiscal years. It is stated that, under an agreement with the financial institutions, acceleration will not be demanded. - FY2021-Q3Repayments Continued, but Borrowings Increased from the Previous QuarterAnnual report
「Funds used in financing activities totaled ¥3,464 million, compared with ¥2,518 million in the same period of the previous year. This was mainly due to cash outflows including a net decrease of ¥1,000 million in short-term borrowings and ¥2,017 million in repayments of lease liabilities.」
The Group recorded a net decrease of ¥1,000 million in short-term borrowings and repaid ¥525 million of long-term borrowings. The borrowing balance decreased from ¥14,531 million at the end of the previous consolidated fiscal year to ¥13,039 million, but increased compared with the end of the previous quarter, with both repayments and balance movements described. - FY2021-Q2Borrowings Declined and Certain Covenants Were WaivedAnnual report
「Current liabilities decreased by ¥1,473 million from the end of the previous consolidated fiscal year to ¥7,310 million. This was mainly due to a ¥1,485 million decrease in borrowings and a ¥96 million increase in other current liabilities. Non-current liabilities decreased by ¥628 million to ¥13,523 million, mainly due to a ¥343 million decrease in borrowings and a ¥284 million decrease in lease liabilities.」
Borrowings decreased from ¥14,531 million at the end of the previous fiscal year to ¥12,703 million at the end of the second quarter. In addition, the terms of the financial covenants concerning the net debt-to-EBITDA ratio were amended to provide a waiver for the interim accounting period ending December 2020. - FY2021-Q1WorsenedAnnual report
「Current liabilities increased by ¥952 million from the end of the previous consolidated fiscal year to ¥9,736 million. This was mainly due to a ¥48 million decrease in trade and other payables and a ¥1,002 million increase in borrowings.」
At the end of the first quarter, borrowings included in current liabilities had increased by ¥1,002 million, and financial exposure from the higher borrowing balance continued. - FY2020WorsenedAnnual report
「The Group entered into a new ¥6 billion commitment line agreement to further strengthen its financial base. During the consolidated fiscal year, it drew down ¥4 billion under the facility.」
Borrowings increased from ¥11,253 million at the end of the previous fiscal year to ¥14,532 million. In addition to establishing a new ¥6 billion commitment line and drawing down ¥4 billion, funding subject to financial covenants has expanded. - FY2020-Q3WorsenedAnnual report
「At a meeting of the Board of Directors held on 15 April 2020, the Company resolved to enter into commitment line agreements totaling ¥3 billion with MUFG Bank, Mizuho Bank and Sumitomo Mitsui Banking Corporation, and entered into agreements on the following terms. The Company also drew down borrowings under these agreements as follows.」
After the filing date, the Company entered into commitment line agreements totaling ¥3 billion with 3 banks and drew down ¥1 billion from each. The agreements have a 1-year term and include financial covenants requiring the maintenance of consolidated net assets and the avoidance of 2 consecutive periods of losses. The risk profile has shifted from risk reduction through lower borrowings to a situation involving additional borrowings and new covenants. - FY2020-Q2MitigatedAnnual report
「Payments for repayment of long-term borrowings: ¥350 million」
During the cumulative second-quarter period, the Group repaid ¥350 million of long-term borrowings, reducing the borrowing balance from ¥11,253 million at the end of the previous fiscal year to ¥10,912 million. The balance reduction in response to financial risks such as borrowings and interest-rate movements continues. - FY2019MitigatedAnnual report
「Borrowings at the end of the consolidated fiscal year totaled ¥11,253 million, a decrease of ¥736 million from the end of the previous consolidated fiscal year.」
Borrowings decreased from ¥11,989 million to ¥11,253 million. In addition, the March 2019 amendment released all security interests and introduced installment repayments while deleting certain financial covenants. - FY2019-Q3MitigatedAnnual report
「To stabilize cash management, the Group entered into an amendment agreement dated 26 March 2019. The existing Term Loan A borrowing balance of ¥1,925 million and Term Loan B borrowing balance of ¥9,500 million, totaling ¥11,425 million as of 29 March 2019, were consolidated and their terms amended.」
The terms of borrowings totaling ¥11,425 million were amended. The repayment schedule was changed from repayment at the end of November 2021 to scheduled installments from the end of June 2019 through the end of December 2023, plus repayment of ¥8,100 million on 29 March 2024. The covenants concerning the debt service coverage ratio and two consecutive periods of operating losses were deleted. Other financial covenants, including the net leverage ratio, remain in place. - FY2018First statedAnnual report
「The Group will work to reduce its borrowings, but because they carry variable interest rates, an increase in interest rates could affect its business and results. In addition, if its repayment schedule changes because of failure to achieve its business plan or other factors, or if refinancing becomes difficult because of changes in the lending policies of financial institutions, its business and results may be affected.」
Borrowings totaled ¥11,989 million at the end of the consolidated fiscal year. Funding risks, including variable interest rates, repayment schedules, refinancing and breaches of financial covenants, are described.