Akatsuki Inc. has secured JPY 15,442 million in long-term debt to fund the acquisition of SUNNY SIDE UP GROUP Inc. and the repurchase of treasury shares.
02
The JPY 15,442 million loan matures on July 31, 2028, and carries a floating interest rate of Japanese Yen TIBOR plus a 1% spread.
03
The long-term loan includes strict financial covenants, including a gross leverage ratio cap of 8.4x, a net leverage ratio cap of 3.1x, and a requirement to maintain at least 75% of net assets relative to the previous fiscal year.
04
Akatsuki Inc. must maintain profitability under the loan terms, specifically avoiding consecutive fiscal years of losses in ordinary and net income.
05
A separate commitment line agreement with Mizuho Bank provides up to JPY 7,590 million in credit through December 30, 2026, to facilitate treasury share repurchases.
06
The commitment line facility operates at the short-term prime rate and is not subject to the financial covenants applied to the primary long-term loan.
07
The company expects the overall impact of these financing arrangements on its consolidated financial results to be immaterial.
Insights
01
Akatsuki Inc. has secured JPY 15,442 million in long-term debt to fund the acquisition of SUNNY SIDE UP GROUP Inc. and the repurchase of treasury shares.
02
The JPY 15,442 million loan matures on July 31, 2028, and carries a floating interest rate of Japanese Yen TIBOR plus a 1% spread.
03
The long-term loan includes strict financial covenants, including a gross leverage ratio cap of 8.4x, a net leverage ratio cap of 3.1x, and a requirement to maintain at least 75% of net assets relative to the previous fiscal year.
04
Akatsuki Inc. must maintain profitability under the loan terms, specifically avoiding consecutive fiscal years of losses in ordinary and net income.
05
A separate commitment line agreement with Mizuho Bank provides up to JPY 7,590 million in credit through December 30, 2026, to facilitate treasury share repurchases.
06
The commitment line facility operates at the short-term prime rate and is not subject to the financial covenants applied to the primary long-term loan.
07
The company expects the overall impact of these financing arrangements on its consolidated financial results to be immaterial.