NEC Corporation (the 'Company') announces that the Company decided to introduce a new hybrid finance (subordinated loan) (the 'New Subordinated Loan') and make an early repayment of the existing hybrid finance (subordinated loan) (the 'Existing Subordinated Loan', and the early repayment of the Existing Subordinated Loan and the introduction of the New Subordinated Loan are collectively referred to as the 'Refinancing').

  1. Purpose of the Refinancing
    The purpose of the Refinancing is, while complying with the replacement restrictions (*1) under the Existing Subordinated Loan, to have appropriate control on interest costs and ensure flexible financial strategy. Stock dilution will not occur since the New Subordinated Loan does not contain any conversion to the shares of the Company's common stock.
    • *1: For making an early repayment of the Existing Subordinated Loan, the Company may raise the funds, within the 12-month period prior to the date of such early repayment, by means of issuance of new shares or other financial instruments such as subordinated loans etc. that has been approved by credit rating institution to have the 'equity credit attributes' equal to or greater than that of the Existing Subordinated Loan to be repaid.'

  2. Overview of the New Subordinated Loan
    The terms and conditions of the New Subordinated Loan are as follows.
  3. Details of the early repayment of the Existing Subordinated Loan

Cautionary Statement with Respect to Forward-Looking Statements


This material contains forward-looking statements regarding estimations, forecasts, targets and plans in relation to the results of operations, financial conditions and other overall management of the NEC Group (the 'forward-looking statements'). The forward-looking statements are made based on information currently available to NEC and certain assumptions considered reasonable as of the date of this material. These determinations and assumptions are inherently subjective and uncertain. These forward-looking statements are not guarantees of future performance, and actual operating results may differ substantially due to a number of factors.

The factors that may influence the operating results include, but are not limited to, the following:

  • Effects of economic conditions, volatility in the markets generally, and fluctuations in foreign currency exchange and interest rate
  • Trends and factors beyond the NEC Group's control and fluctuations in financial conditions and profits of the NEC Group that are caused by external factors
  • Risks arising from acquisitions, business combinations and reorganizations, including the possibility that the expected benefits cannot be realized or that the transactions may result in unanticipated adverse consequences
  • Developments in the NEC Group's alliances with strategic partners
  • Effects of expanding the NEC Group's global business
  • Risk that the NEC Group may fail to keep pace with rapid technological developments and changes in customer preferences
  • Risk that the NEC Group may lose sales due to problems with the production process or due to its failure to adapt to demand fluctuations
  • Defects in products and services
  • Shortcomings in material procurement and increases in delivery cost
  • Acquisition and protection of intellectual property rights necessary for the operation of business
  • Risk that intellectual property licenses owned by third parties cannot be obtained and/or are discontinued
  • Risk that the NEC Group may be exposed to unfavorable pricing environment due to intensified competition
  • Risk that a major customer changes investment targets, reduces capital investment and/or reduces the value of transactions with the NEC Group
  • Risk that the NEC Group may be unable to provide or facilitate payment arrangements (such as vendor financing) to its customers on terms acceptable to them or at all, or risk that the NEC Group's customers are unable to make payments on time, due to the customers' financial difficulties or otherwise
  • Risk that the NEC Group may experience a substantial loss of, or an inability to attract, talented personnel
  • Risk that the NEC Group's ability to access the commercial paper market or other debt markets are adversely affected due to a downgrade in its credit rating
  • Risk that the NEC Group may incur large costs and/or liabilities in relation to internal control, legal proceedings, laws and governmental policies, environmental laws and regulations, tax practice, information management, and human rights and working environment
  • Consequences of natural and fire disasters
  • Changes in methods, estimates and judgments that the NEC Group uses in applying its accounting policies
  • Risk that the NEC Group may incur liabilities and losses in relation to its retirement benefit obligations
The forward-looking statements contained in this material are based on information that NEC possesses as of the date hereof. New risks and uncertainties come up from time to time, and it is impossible for NEC to predict these events or how they may affect the NEC Group. NEC does not intend to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
***

NEC is a registered trademark of NEC Corporation. All Rights Reserved. Other product or service marks mentioned herein are the trademarks of their respective owners. ©2016 NEC Corporation.

NEC Corporation published this content on 29 September 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 29 September 2016 06:20:04 UTC.

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