Risk of substantial borrowings and financial constraints associated with the acquisition of USEN
First written in FY2016. 7 of 13 entries say "Mitigated", first in FY2020-Q1. Latest entry: 2026-07-13.
U-Next Holdings moved to the "Worse" side of this theme in 2017, 8 years before the typical company in this theme (2025).
1 other company's latest entry also says "Worsened".
- 2026-07-13WorsenedFinancial Results Presentation
「Both the leverage ratio and D/E ratio increased as a result of financing primarily for M&A」
The Company disclosed increases in the leverage ratio and D/E ratio following financing primarily intended for M&A. - FY2024MitigatedAnnual report
「Cash used in financing activities during the current consolidated fiscal year was ¥4.755 billion, compared with cash provided of ¥23.108 billion in the same period of the previous year. Repayment of long-term borrowings reduced cash by ¥3.03 billion.」
We repaid ¥3.03 billion of long-term borrowings during the full fiscal year, leaving long-term borrowings of ¥52.888 billion at fiscal year-end, including the portion due for repayment within 1 year. The financial covenants remain in effect. - FY2024-Q3MitigatedAnnual report
「Non-current liabilities decreased by ¥2,730 million from the end of the previous consolidated fiscal year to ¥64,558 million, mainly because long-term borrowings decreased by ¥2,250 million and liabilities related to retirement benefits decreased by ¥45 million.」
Long-term borrowings, including borrowings related to the acquisition of USEN, declined by ¥2.25 billion during the cumulative third-quarter period, providing an updated numerical indication of the reduced financial burden. - FY2024-Q1MitigatedAnnual report
「Non-current liabilities decreased by ¥898 million from the end of the previous consolidated fiscal year to ¥66,390 million, mainly because long-term borrowings decreased by ¥750 million and liabilities related to retirement benefits decreased by ¥36 million.」
Long-term borrowings, including acquisition-related borrowings, declined by ¥750 million in the first quarter, providing an updated numerical indication of the reduced financial burden. - FY2023-Q2MitigatedAnnual report
「The specific changes include the removal of the requirements to maintain the consolidated gross leverage ratio and debt service coverage ratio, which were part of the financial covenants; the relaxation of the prohibition on ordinary losses from a single fiscal year to 2 consecutive fiscal years; the removal of the requirement to provide group assets as collateral for borrowings; and the extension of the final repayment date from 30 September 2026 to 31 March 2030.」
The full refinancing through a new syndicated loan removed the leverage and debt repayment capacity covenants, relaxed the prohibition on ordinary losses, removed the collateral requirement and extended the final repayment date, easing the financial constraints on the acquisition-related borrowings. - FY2022MitigatedAnnual report
「The syndicated loan agreement of our company, with borrowings of ¥59.42 billion outstanding at the end of the current consolidated fiscal year, contains financial covenants.」
The financial covenants remain in effect, but the syndicated loan balance declined from ¥64.01 billion at the end of the previous fiscal year to ¥59.42 billion. - FY2021MitigatedAnnual report
「The syndicated loan agreement of our company, with borrowings of ¥64.01 billion outstanding at the end of the current consolidated fiscal year, contains financial covenants. If any of the covenants below is breached, all contractual liabilities may become immediately due and payable.」
The financial covenants remain in effect, but the syndicated loan balance declined from ¥70.18 billion at the end of the previous fiscal year to ¥64.01 billion. - FY2020-Q1MitigatedAnnual report
「The company fully refinanced the existing syndicated loan and implemented other measures on more favorable refinancing terms. With Mizuho Bank, Ltd. as lead arranger, it entered into a syndicated loan agreement totaling ¥73.5 billion with 10 financial institutions, including Mizuho Bank, Ltd., on 25 September 2019, and implemented the full refinancing and other measures on 30 September 2019.」
The company states that it refinanced the acquisition-related borrowings in full on favorable terms, specifying its response to the previous borrowings and financial constraints. - FY2018RestatedAnnual report
「The syndicated loan agreement of our company, with borrowings of ¥74.305 billion outstanding at the end of the current consolidated fiscal year, contains financial covenants. If any of the covenants below is breached, all contractual liabilities may become immediately due and payable.」
Borrowings related to the acquisition declined from ¥76.985 billion at the end of the previous fiscal year to ¥74.305 billion, but financial covenants concerning ordinary profit, net assets, leverage and debt repayment capacity remain in effect. - FY2017MaterialisedAnnual report
「The syndicated loan agreement of our company, with borrowings of ¥76.985 billion outstanding at the end of the current consolidated fiscal year, contains financial covenants.」
Borrowings used to fund the acquisition of USEN reached ¥76.985 billion, and financial covenants concerning ordinary profit, net assets, leverage and debt repayment capacity are in effect. - FY2017-Q4MaterialisedAnnual report
「The syndicated loan agreement of our consolidated subsidiary, with borrowings of ¥67.6 billion outstanding at the end of the second quarter of the current consolidated fiscal year, contains financial covenants. If any of the covenants below is breached, all contractual liabilities may become immediately due and payable.」
Borrowings related to the acquisition reached ¥67.6 billion, and the actual agreement included financial covenants concerning ordinary profit, net assets, leverage and debt repayment capacity. - FY2017-Q3MaterialisedAnnual report
「U-NEXT SPC1 Co., Ltd., a consolidated subsidiary of the company, borrowed ¥51,700 million on 3 April Heisei 29, representing part of the term loan amount under a syndicated loan agreement totaling ¥94,500 million entered into on 29 March Heisei 29, to fund matters related to the business integration with USEN Co., Ltd.」
The substantial borrowings associated with the acquisition of USEN have progressed from the contractual stage to the actual drawdown of ¥51.7 billion, making the financing risk accompanied by financial constraints more tangible. - FY2016First statedAnnual report
「Although substantial acquisition funding will need to be raised in the short term, creating risks of lower profit levels and deteriorating cash flow, we believe that this business integration may enable us to move into a new growth stage.」
We have disclosed a ¥94.5 billion syndicated loan related to the acquisition of USEN, together with financial covenants concerning ordinary profit, net assets, the leverage ratio and debt repayment capacity.