Chiyoda Corp Signs Commitment Line Agreement, Pre-Pays Subordinated Loan

TOKYO, May 27 (Pulse News Wire) – Chiyoda Corporation (6366.T) resolved today to sign a commitment line agreement with Mitsubishi UFJ Bank and pre-pay a subordinated loan, contingent upon approval of certain changes to its articles of incorporation at its upcoming annual shareholders' meeting scheduled for June. The commitment line agreement includes a borrowing limit of ¥20.00 billion.

It is set to be finalized on June 30, 2026, and will feature variable interest rates based on benchmark rates plus a spread. The two-year contract does not require collateral. Additionally, Chiyoda plans to terminate a previously disclosed financing agreement with Mitsubishi Financial Services Company, a wholly-owned subsidiary of Mitsubishi Corporation, on the same day as the pre-payment of the subordinated loan.

The subordinated loan, executed on July 31, 2024, had a principal amount of ¥20.00 billion and was due on July 31, 2027. It too carries variable interest rates. Looking ahead, the company expects no impact on its fiscal year 2027 performance resulting from these actions.