ALTECH: Secures Term Loan Agreement Amid Mid-Term Business Plan

TOKYO, Mar 26 (Pulse News Wire) – Altech CO.,LTD. (9972.T) announced today that it has entered into a financial covenant-linked money lending agreement, led by Mitsubishi UFJ Bank, aimed at reinforcing its financial foundation and ensuring flexible and stable funding sources to achieve its mid-term management targets outlined in its vision and plan for fiscal years.

Under the agreement, which was finalized on March 24, 2026, and disbursed on March 31, 2026, Altech secured a total loan amount of ¥1.850 billion. The individual loan disbursements will mature on various dates up to December 30, 2030. The interest rate is based on a benchmark plus spread. Notably, there is no collateral involved in this arrangement.

Key financial covenants stipulate that Altech’s consolidated net assets should remain above 75% compared to either the previous fiscal year-end or the higher value recorded in November 2025. Additionally, the company must avoid consecutive annual operating losses post-November 2026. Similarly, Altech's subsidiary, Altech New Materials Co., Ltd., must maintain its standalone net assets above 125% for two consecutive years post-November 2027, subject to certain conditions. Looking ahead, the company anticipates minimal impact on its consolidated performance for the fiscal year ending November 2026.

Any significant developments will be disclosed promptly.