TOKYO, Mar 13 (Pulse News Wire) – H-one CO.,LTD. (5989.T) announced today that it has decided to enter into two financial covenant-linked loan agreements.
The loans aim to support the company's aggressive investment strategy outlined in its mid-term plan "Change 2027," which was unveiled in May 2024. Under the syndicated loan agreement, the first term loan of ¥80 billion (estimated) will be finalized on March 13, 2026 with repayment due by March 26, 2026. The second term loan of ¥15 billion (estimated) will be concluded on March 26, 2026 and repaid by March 31, 2026.
Both loans carry interest rates based on benchmark rates plus spread. Key financial covenants include maintaining consolidated net assets at least 75% of either the previous fiscal year or the base period (fiscal 2025) and ensuring no consecutive operating losses in any fiscal year. Additionally, the company must maintain consolidated net assets at 75% or more compared to the previous fiscal year, starting from the fiscal year ending March 2027.
The impact on the company’s consolidated performance for the fiscal year ending March 2026 is expected to be minor.
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