TESS Holdings Co.,Ltd. [5074.T]
TOKYO, Jun 17 (Pulse News Wire) – Tess Holdings CO.,LTD. (5074.T) announced today that its subsidiary, TES Engineering Co., Ltd., has entered into a secured loan commitment line agreement with a syndicate led by Sumitomo Mitsui Banking Corporation.
The total committed amount is June 17, 2026. Under the agreement, TES Engineering will maintain its net assets at least equal to either 120% of the consolidated balance sheet's net asset value as of June 30, 2021, or 110% of the previous fiscal year’s net asset value, whichever is higher. Additionally, the subsidiary must ensure that its ordinary profit does not show a loss at the end of each fiscal year. The loan facility allows TES Engineering to draw funds monthly until July 31, 2026.
The initial principal amount drawn is ¥8 billion. The financial covenant also stipulates that TES Engineering must report on its standalone balance sheet’s net asset value annually. Regarding future impacts, TESS Holdings stated that there would be no effect on the group's performance for the fiscal year ending June 2026. However, the impact on the fiscal year ending June 2027 is currently being assessed, and any significant effects on consolidated results will be disclosed promptly.
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