Source disclosure: January 09, 2026
AB&Company Co., Ltd. [9251.T]
TOKYO, Jan 09 (Pulse News Wire) – Ab&company CO.,LTD. (9251.T) announced today that it had concluded a loan agreement with financial covenants at its board meeting held on December 18, 2025.
The agreement was finalized on December 22, 2025. The primary reason for entering into this agreement is to secure working capital. The loan agreement involves a city bank and carries a principal amount of ¥1.200 billion. The repayment deadline is set for November 30, 2030, and the transaction is unsecured.
Financial covenants attached to the loan stipulate that the consolidated net assets of the borrower as of the end of each fiscal year must be at least 80% times the total consolidated net assets as of the previous fiscal year-end. Additionally, the ordinary loss shown in the consolidated income statement for each fiscal year must not result in losses starting from the fiscal year ending October 2025. Furthermore, the leverage ratio calculated based on the formula (short-term borrowings + commercial paper + long-term borrowings due within one year + long-term borrowings + bonds) / EBITDA must remain below 4.0 times and positive for each fiscal year. Lastly, the debt service coverage ratio (DSCR) calculated using the formula (cash flow from operating activities + cash flow from investing activities + interest payments + cash balances) / (total interest and principal payments made by the borrower) must be maintained at 1.05 or higher for each fiscal year.
Looking ahead, the impact of this agreement on the company's consolidated performance for the fiscal year ending October 2026 is expected to be minor.
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