Financial Covenants Under Loan Agreements and Delinquency Rate Management
First written in FY2022-Q3. 1 of 5 entries say "Advanced", first in FY2022. Latest entry: 2026-09-18.
- 2026-09-18OtherStatutory disclosure document
「Notice Concerning the Extension of the Maturity of a Loan Agreement with Financial Covenants」
The financial covenants were unchanged, while the borrowing period under the term loan and the commitment period under the commitment line were extended from 30 September 2026 to 30 December 2026. - FY2026WorsenedAnnual report
「The group's borrowings are scheduled to mature during the current consolidated fiscal year, and the company plans to refinance the entire amount. Discussions with financial institutions regarding the refinancing were still ongoing as of the filing date, and the applicable interest rate and contractual terms after refinancing had not been determined.」
In addition to the risks associated with financial covenants, the company disclosed that discussions were ongoing to refinance the entire amount of borrowings maturing at the end of September 2026, with the interest rate and contractual terms yet to be determined. - FY2025RestatedAnnual report
「Some of the borrowing agreements entered into by the group contain financial covenants. These covenants establish specific numerical requirements, including the maintenance of net assets. If the group breaches any such covenant, it may lose the benefit of time for performance under the relevant agreement at the lender's request and may therefore need to secure funds to repay its obligations immediately.」
The company continues to disclose financial covenants, including requirements to maintain net assets and adjusted EBITDA, as well as the risk of losing the benefit of time for performance in the event of a breach. - FY2022AdvancedAnnual report
「In addition, the company completed the refinancing of its borrowings at the end of the period in order to reduce its interest burden and ease its financial covenants.」
The company completed the refinancing of its existing borrowings and disclosed a ¥5 billion term loan, a ¥7 billion committed credit line and new financial covenants. - FY2022-Q3First statedAnnual report
「If the applicable non-payment rate exceeds 1.08% for 3 consecutive months, or exceeds 1.35% even once, the borrower shall report the cause and remedial measures to the lender through the agent and engage in good-faith discussions with the lender regarding remediation of the relevant event.」
In addition to non-payment rate thresholds, the company discloses financial conditions under its borrowing agreements, including net leverage ratio, earnings, net assets, EBITDA and debt service coverage ratio, as contractual obligations.