TESS Holdings Co.,Ltd. [5074.T]
TOKYO, Apr 15 (Pulse News Wire) – Tess Holdings CO.,LTD. (5074.T) announced today that its subsidiary, TES Engineering Co., Ltd., has entered into a loan agreement with financial covenants.
The agreement was finalized , and is aimed at securing working capital for the subsidiary. Under the syndicated commitment line arrangement led by Sumitomo Mitsui Banking Corporation, TES Engineering secured a total commitment amount of April 15, 2026. The loan is unsecured and requires monthly repayments on the last business day of each month, with the final repayment due on May 29, 2026. The initial principal amount of the loan is May 29, 2026.
Financial covenants stipulate that TES Engineering must maintain its net assets at least equal to either 1.2 times the net asset value reported as of June 30, 2021, or 1.1 times the net asset value reported at the end of the previous fiscal year, whichever is higher. Additionally, the subsidiary must ensure that its ordinary profit does not show a loss at the end of each fiscal year. Regarding the impact on the consolidated performance for the fiscal year ending June 2026, TESS Holdings anticipates a minor effect. However, should there be significant implications for future consolidated results, the company plans to make further disclosures accordingly.
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