Chiyoda Corp Completes Partial Repurchase and Cancellation of Preferred Shares, Signs Commitment Line Agreement

TOKYO, Jun 30 (Pulse News Wire) – Chiyoda Corporation (6366.T) completed several key transactions, including the partial repurchase and cancellation of preferred shares and the signing of a commitment line agreement with Mitsubishi UFJ Bank. Additionally, the company settled early repayment of subordinated loans and terminated a financing contract with Mitsubishi Financial Services.

In connection with the approval of amendments to the company's articles of incorporation at its 98th regular shareholders' meeting held on June 24, Chiyoda finalized four significant actions: 1. Partial repurchase and cancellation of A-type preferred shares, involving the acquisition of 110,400,000 shares at a price of ¥499 per share, representing 63.1% of the total outstanding A-type preferred shares. The transaction was executed with Mitsubishi Corporation. 2. Signing a commitment line agreement with Mitsubishi UFJ Bank, which includes a borrowing limit of ¥20.00 billion. The agreement was concluded, with a two-year term and variable interest rates based on benchmark rates plus spreads. 3.

Early repayment of subordinated loan agreements with Mitsubishi UFJ Bank, amounting to ¥20.00 billion. The initial loan was executed on July 31, 2024, with a maturity date of July 31, 2027, and was fully repaid. 4. Termination of a financing contract with Mitsubishi Financial Services, which had a borrowing limit of ¥10.00 billion and was set to expire on July 31, 2027. The contract was canceled. These actions align with Chiyoda’s strategic goals to achieve financial independence within two years, prepare for a potential market classification upgrade from Standard to Prime, and resume dividend payments to common shareholders. The company also aims to establish a robust growth trajectory over the next five to ten years.