TOKYO, Mar 30 (Pulse News Wire) – Avex Inc. (7860.T) announced today that its newly established subsidiary, Avex Song Fund 1 LLC, has entered into a senior secured credit facility agreement worth up to $1.4 billion with City National Bank.
The agreement includes financial covenants aimed at managing debt levels and operational performance. Key provisions of the financial covenants include maintaining a leverage ratio below 5.0 times for music rights-related borrowings as of the end of each quarter. However, this threshold can drop to 6.0 times if actual revenue falls short of forecasted figures for the fiscal year ending December 31, 2026. Additionally, the fixed charge coverage ratio must remain above 1.1 starting from the quarter ending March 31, 2026.
Avex Song Fund 1 LLC, based in Delaware, USA, will focus on the management and operation of music-related rights. The subsidiary's capital is expected to be $100 million. The impact of this agreement on Avex Inc.'s consolidated results for the fiscal year ending March 30, 2026, is anticipated to be minor. The company will promptly disclose any significant developments going forward.
🟢 Confidence: High AI-translated content.