TOKYO, Mar 19 (Pulse News Wire) – Novac CO.,LTD. (5079.T) decided today to implement a loan based on its commitment line agreement signed with ten financial institutions on April 16, 2024.
The purpose of the loan is to efficiently secure working capital for the company. The loan details include a syndicated commitment line agreement totaling March 19, 2026. The lenders consist of city banks, regional banks, secondary regional banks, and credit unions, amounting to ten institutions. The loan implementation date is set for March 27, 2026, with repayment due on April 30, 2026.
The transaction involves repaying existing borrowings of ¥7 billion and securing a new loan of ¥7 billion. No collateral is involved in this transaction, and there are certain financial covenants stipulated. Specifically, the total equity balance on the consolidated balance sheet at the end of each fiscal year must remain at least equal to either 120% of the total equity balance as of April 30, 2023, or 110% of the total equity balance as of the latest fiscal year-end, whichever is higher. Additionally, the company must ensure that ordinary income does not show a loss in the individual profit and loss statement at the end of each fiscal year.
According to the company, the impact of this loan on its performance is expected to be minor.
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