TOKYO, Mar 18 (Pulse News Wire) – TEAC Corporation (6803.T) announced today that its board of directors has approved a syndicated loan agreement arranged by Resona Bank. The agreement aims to ensure financial stability and strengthen the company's capital base while compressing financing costs.
Key details of the contract include: - Contract form: Commitment line - Execution date: March 24, 2026 - Effective period: Six months from March 31, 2026, extendable twice for one-year periods - Maturity date: September 30, 2026 - Amount: ¥3.350 billion - Agent: Resona Bank - Participating banks: Resona Bank, Kansai Sumitomo Mitsui Banking Corporation, Chiba Bank, Shokocho Central Cooperative Bank, Iyo Bank, Eighty-Nine Nagano Bank, and Touka Bank - Purpose: Working capital, including refinancing existing borrowings Financial covenants attached to the agreement stipulate maintaining a consolidated equity ratio of 10% or higher at the end of each fiscal year and ensuring operating profit does not show losses according to the consolidated income statement for each fiscal year. The impact on TEAC’s consolidated performance forecast for the fiscal year ending March 2026 is expected to be minor.
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