TOKYO, Mar 19 (Pulse News Wire) – Kodama Chemical Industry CO.,LTD. (4222.T) announced today that its consolidated subsidiary, Osawagami Seiki Co., Ltd., entered into a syndicated loan agreement with Mitsubishi UFJ Financial Group acting as arranger.
The agreement includes financial covenants aimed at maintaining the group's net assets and ordinary profit levels. Under the agreement, Osawagami Seiki will borrow funds amounting to ¥12.00 billion on March 31, 2026, with repayment due on March 30, 2029. The interest rate is set at a variable rate based on benchmark rates plus spread. Participating banks include Mitsubishi UFJ Bank, Sumitomo Mitsui Banking Corporation, Mizuho Bank, Shizuoka Bank, Resona Bank, Chuo Cho Kokumin Ginko, Higo Bank, SMBC Trust Bank, Japan Finance Corporation, Hyobu Bank, Sangyo Sanzan Bank, and Touwa Bank.
Financial covenants stipulate that the consolidated net assets of the Osawagami Seiki Group must remain at least 75% higher than either the end of the preceding fiscal year or the latest balance sheet date. Additionally, the group must avoid consecutive losses in ordinary profits. Looking ahead, the company plans to recognize arrangement fees totaling ¥120 million as extraordinary expenses. Any significant impact on future consolidated performance forecasts will be disclosed promptly.
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