TOKYO, Mar 25 (Pulse News Wire) – Nippon Kinzoku CO.,LTD. (5491.T) resolved today during its board meeting to enter into a syndicated loan agreement with financial covenants (the “Agreement”) aimed at refinancing existing borrowings and strengthening its financial foundation.
The agreement includes a Term Loan A of ¥13.00 billion, Term Loan B of ¥1.500 billion, and a Commitment Line of ¥7 billion. The total borrowing amount is ¥21.50 billion. The Term Loans A and B will run for three years from March 26, 2026, to March 30, 2029, while the Commitment Line will last for one year from March 26, 2026, to March 31, 2027. As collateral, the company will pledge factory assets, including land, buildings, and structures.
Lenders consist of urban banks, government-affiliated banks, regional banks, and others. Under the Agreement, NIPPON KINZOKU must maintain its consolidated net assets at the higher of 100% of the amount recorded as of March 31, 2025, or 95% of the previous fiscal year-end figure. Additionally, the company must ensure that its standalone net assets remain above the greater of 100% of the amount recorded as of March 31, 2025, or 95% of the prior fiscal year-end figure. Furthermore, the company must avoid consecutive losses over two consecutive fiscal periods starting from the fiscal year ending March 31, 2026, with the initial assessment based on the fiscal years ending March 31, 2026, and March 31, 2027.
Looking ahead, the company expects the impact of the Agreement on its performance for the fiscal year ending March 31, 2026, but will promptly disclose any necessary adjustments to its earnings forecast should circumstances warrant.
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