Shikigaku.Co. Secures Loan Agreement With Financial Covenant

TOKYO, Jul 31 (Pulse News Wire) – Shikigaku.co.,ltd. (7049.T) announced today that it has entered into a loan agreement with financial covenants to secure funds for acquiring shares of Machiki Kiiki Co., Ltd.

And repaying existing debts. The agreement was signed with Resona Bank, with a principal amount of ¥578 million. The loan will mature in July 2033, seven years from now. Funds raised through this agreement will be used for two purposes: 1. Acquiring shares of Machiki Kiiki Co., Ltd.

Worth ¥373 million. 2. Repaying existing borrowings from Rackland Corporation totaling ¥205 million. The loan agreement includes financial covenants stipulating that interest rates will increase by 0.25% percentage points if the company experiences consecutive operating losses or if its debt-to-EBITDA ratio exceeds seven times in any fiscal year ending February 2028 or later. Additionally, the covenant requires the continued holding of Machiki Kiiki's shares and submission of financial statements.

Regarding the impact on the company’s performance and financial condition for the fiscal year ending February 2027, SHIKIGAKU stated that these effects have already been incorporated into their previously published forecast.