Yokorei Refinances Debt Through New Subordinated Loan and Early Repayment of Existing Loan

TOKYO, Jun 29 (Pulse News Wire) – Yokorei CO.,LTD. (2874.T) announced plans to refinance through a new subordinated loan worth ¥10.00 billion and the early repayment of an existing subordinated loan raised in September 2021.

The refinancing, scheduled for execution on September 25, 2026, aims to maintain financial stability and diversify funding sources while adhering to covenant restrictions. Key details of the new subordinated loan include a term of 35 years, with optional prepayment possible five years post-execution under certain conditions. Interest payments can be deferred at the company's discretion. The loan does not come with conversion rights into ordinary shares, thus avoiding dilution.

The credit rating agency Nippon Rating & Research expects the capital structure to be rated "middle," "50%." For the existing subordinated loan, which was executed on September 27, 2021, Yokorei will make an early repayment totaling ¥10.00 billion. This move aligns with the loan’s prepayment clause and follows similar covenants as the new loan. Both loans carry fixed interest rates until September 25, 2026, followed by variable rates thereafter, with a rate step-up on September 26, 2026. Regarding the impact on performance, the company anticipates minimal effects on its consolidated results for the fiscal quarter ending September 2026.