Mazda Motor Announces New Subordinated Loan Financing and Early Repayment of Existing Debt

TOKYO, Jun 29 (Pulse News Wire) – Mazda Motor Corporation (7261.T) announced plans to secure funding through a new subordinated loan (the “new subordinated loan”) and make early repayment of existing subordinated loans (the “existing subordinated loans”). Together, these actions are referred to as the “refinancing.” The primary objective of the refinancing is to comply with prepayment restrictions on the existing subordinated loans while diversifying financing methods and strengthening the company’s financial foundation.

Importantly, the new subordinated loan does not come with conversion rights into ordinary shares, thus avoiding dilution of equity. Key details of the new subordinated loan include: - Borrowing amount: ¥70.00 billion (estimated) - Purpose: To repay the existing subordinated loans - Contract signing date: June 29, 2026 - Expected execution date: July 21, 2026 (estimated) - Prepayment conditions: Possible partial or full prepayment on interest payment dates starting July 21, 2031, or upon meeting certain conditions Additionally, Mazda intends to prepay the existing subordinated loans on July 21, 2026, totaling ¥70.00 billion.

This prepayment is based on the prepayment clause stipulated in the existing subordinated loans, which requires notification to all lenders prior to the interest payment date starting July 20, 2026. The new subordinated loan will be structured with a class rating of Class 3, evaluated by 50% (Credit Rating Agency Investment Information Center).

Participating investors include Sumitomo Mitsui Banking Corporation, Sumitomo Mitsui Trust Bank, Mizuho Bank, Hiroshima Bank, Yamaguchi Bank, and Momiji Bank.