TOKYO, Mar 23 (Pulse News Wire) – Smile Holdings Inc. (7084.T) decided today to secure a loan of ¥16.77 billion to finance the acquisition of With Holdings and refinance its existing debt.
The funds will also cover associated expenses related to the transaction. The loan agreement was approved during a board meeting held on March 31, 2026. It will be provided by Mitsubishi UFJ Bank and will have a term from March 31, 2026, to March 30, 2027. The interest rate will be variable based on benchmark rates plus spread.
The loan will be used exclusively for acquiring shares, refinancing existing debts, and covering incidental costs. Repayment will occur in a lump sum upon maturity, and there will be no collateral involved. Additionally, the loan agreement includes certain financial covenants requiring the company to maintain its consolidated net assets at least 75% times higher than the amount reported at the end of September 2026, and ensuring no operating losses are recorded in subsequent fiscal years ending March 2027 and beyond. Looking ahead, Smile Holdings plans to replace this bridge loan with a syndicated long-term loan arranged by Mitsubishi UFJ Bank by March 30, 2027.
In case of any changes impacting performance, the company will promptly disclose adjustments to its earnings forecast.
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