TOKYO, Apr 22 (Pulse News Wire) – LOIVE (352A.T), represented by President Masakazu Maekawa, has sealed a term loan agreement with Mitsubishi UFJ Bank and an overdraft contract with Hokuyo Bank. The term loan agreement, effective from April 22, 2026 to April 10, 2026, includes a borrowing limit of ¥1.800 billion.
Additionally, the overdraft contract was signed on April 10, 2026 with a borrowing limit of ¥1 billion and a validity period until March 31, 2027. The term loan agreement is aimed at securing flexible and stable funding for future growth strategies, particularly for expanding operations through new store openings.
Key financial covenants include maintaining net assets at least 75% of the previous year's total for two consecutive fiscal years, ensuring operating profit does not fall below ¥0 for two consecutive years, and keeping the ratio of net interest-bearing debt to cash flow within 15 for two consecutive years. Looking ahead, while the impact on the current fiscal year ending March 31, 2027, is expected to be minor, the company plans to promptly disclose any significant developments related to its business progress.
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