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Announcement on LBO loan refinancing
2010.12.24
The AvanStrate Group concluded loan agreements for a total amount of 82 billion yen (including a corporate syndicated loan and a loan covered by overseas untied loan insurance of Nippon Export and Investment Insurance (NEXI)) as a result of negotiations seeking loans from several financial institutions to refinance its debt for the relevant LBO payments since the loan agreement was concluded in the wake of the MBO in June 2008.
The Bank of Tokyo-Mitsubishi UFJ arranged these loan agreements for a maximum term of five years and for purposes including repayment of the aforementioned LBO loan.
This refinancing will drastically improve the debt structure of the AvanStrate Group, enabling it to improve earnings by reducing interest costs and making more measures available when securing funds for promoting capital investment strategies toward business expansion.
The details of the loan agreements are as follows.
The Bank of Tokyo-Mitsubishi UFJ arranged these loan agreements for a maximum term of five years and for purposes including repayment of the aforementioned LBO loan.
This refinancing will drastically improve the debt structure of the AvanStrate Group, enabling it to improve earnings by reducing interest costs and making more measures available when securing funds for promoting capital investment strategies toward business expansion.
The details of the loan agreements are as follows.
| Term loan | Commitment line | NEXI insured loan | |
|---|---|---|---|
| Breakdown | 52 billion yen | 10 billion yen | 20 billion yen |
| Effective date | 30-Dec-10 | ||
| Term | Maximum 5 years | 1 year | 5 years |
| Arranger | Arranger: The Bank of Tokyo-Mitsubishi UFJ | ||
| Joint arranger: Development Bank of Japan | |||
| Lender | Multiple domestic financial institutions | ||
