TOKYO, Mar 19 (Pulse News Wire) – PHC Holdings Corporation (6523.T) announced today that its board of directors approved a syndicated loan agreement with financial covenants. The agreement aims to secure operational funds and refinance existing debt, enhancing financial flexibility and cash flow stability.
Under the agreement, PHC will enter into a syndicate led by Sumitomo Mitsui Banking Corporation involving eight financial institutions. Key components include: - Term Loan A: Undisclosed amount - Term Loan B: €¥310 million - Commitment Line: Undisclosed limit - Maturity Date: March 31, 2031 (expected) The loan does not require collateral but includes financial covenants stipulating that the total equity in the consolidated balance sheet must remain above a certain threshold compared to the end of March 2025 levels.
Additionally, the repayment period based on the company's consolidated free cash flow must stay below predefined years, gradually decreasing from ten years to six years post-2030. PHC expects the impact on its consolidated performance to be minor.
The move supports the company’s ongoing efforts to strengthen its financial structure as outlined in its mid-term business plan published in November 2024.
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