Source disclosure: February 13, 2026
LEOPALACE21 CORPORATION [8848.T]
TOKYO, Feb 13 (Pulse News Wire) -- Leopalace21 Corporation (8848.T), led by President Fumya Miyao, announced on Monday that its board of directors had approved a refinancing agreement with Mizuho Bank Ltd. The deal aims to refinance a previous loan taken out in March 2025 and improve the company's financial stability through revised borrowing terms.
The background of this transaction traces back to March 7, 2025, when Leopalace21 disclosed its initial borrowing arrangement with Mizuho Bank. This was part of an effort to refinance a ¥300 billion loan obtained from Imabari Goshi Gaisha, associated with Fortress Investment Group LLC, which was originally secured on December 25, 2023. Now, the new term loan agreement will be used not only to repay the existing loan but also to enhance the company’s financial structure.
Under the new agreement, Leopalace21 will borrow ¥300 billion from Mizuho Bank under a term loan facility. The contract is set to be finalized on February 20, 2026, with a contractual period running from February 27, 2026, until February 28, 2029. The interest rate applied will be Japan TIBOR plus 1.10%, and repayment will occur as a single lump sum payment upon maturity. Importantly, there will be no collateral or guarantees required for this loan.
In addition to these financial terms, the agreement includes several covenants aimed at maintaining the company's financial health. These include ensuring that operating income and ordinary income do not show losses in any fiscal year starting from the fiscal year ending March 2026. Furthermore, the net debt-to-EBITDA ratio must remain below five times throughout each fiscal year.
Looking ahead, while the impact on the fiscal year ending March 2026 is expected to be minimal, the reduced interest rates could lead to a decrease in interest payments by approximately ¥7 billion in the fiscal year ending March 2027 compared to exercising the existing loan's term-out option. This move underscores Leopalace21's strategic approach to managing its finances and optimizing its capital structure over the coming years.
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