TOKYO, May 13 (Pulse News Wire) – Solasto Corporation (6197.T) resolved at its board meeting held on May 13 to enter into a revolving credit agreement with MP2,605 Co., Ltd. to refinance all existing loans from financial institutions.
The total amount borrowed under the revolving credit agreement will be ¥19.00 billion. Key details of the transaction include: - Interest rate: Fixed rate based on Japanese TIBOR plus spread - Disbursement dates: First disbursement on May 18, 2026, second on May 19, 2026 - Purpose: To repay existing debts totaling ¥14.80 billion and secure operating funds of ¥4.200 billion - Repayment due: By December 31, 2026; prepayment allowed - Guarantee: Unsecured loan Following the completion of the open offer scheduled for May 18, 2026, MP__NUM_6__ Co., Ltd. is expected to acquire 48,373,328 shares, becoming the controlling shareholder. As such, the borrowing arrangement qualifies as a related-party transaction.
However, Solasto believes the conditions of the loan align with those of a third-party acquisition financing loan, limiting potential conflicts of interest. Additionally, Solasto secured independent opinions from three outside directors, confirming the fairness and necessity of the transaction for minority shareholders. The repayment of domestic bank loans totaling ¥14.80 billion is set for May 18, 2026. The impact on Solasto's fiscal year 2027 performance is anticipated to be minor.
Any significant developments will be promptly disclosed.
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