TOKYO, May 22 (Pulse News Wire) – JALCO Holdings Inc. (6625.T) decided to prepay its third and fifth unsecured bonds on May 22 and issue a new twelfth unsecured bond worth ¥2 billion on May 28.
The new bond, which carries an interest rate of year 3.0%, will replace existing bonds with higher rates of year 6.0% and year 6.0%. This move aims to reduce annual interest expenses by approximately ¥42 million while increasing the total funding amount from ¥1.700 billion to ¥2 billion. The new issuance will be handled entirely by Catalyst Corporation, a firm wholly owned by JALCO's president, Mr. Junichi Tanabe.
In addition to lowering financing costs, the restructuring allows JALCO to maintain flexibility for future investments and acquisitions. The company plans to allocate funds towards growth areas such as real estate investment, financial support services, and energy storage projects. The transaction was approved by the board of directors, excluding Mr. Tanabe due to his conflict of interest.
Independent directors conducted thorough reviews ensuring fair treatment of minority shareholders.
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