Skylark : Notice Regarding Agreement to Amend Long-Term Commitment Line Agreement
December 27, 2021 at 01:07 am EST
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December 27, 2021
Dear Sirs and Madams,
Company:
Skylark Holdings Co., Ltd.
Representative:
Makoto Tani, Chairman, President & CEO
(Securities Code: 3197; TSE First Section)
Contact:
Investor Relations
Notice Regarding Agreement to Amend Long-Term Commitment Line Agreement
Skylark Holdings Co., Ltd. (the Company) hereby announces that the Company has reached an agreement with the participating financial institutions today to amend the long-term commitment line agreement (the Amendment) as follows.
Purpose for the Amendment
The Company entered into a Long-Term Commitment Agreement on February 12, 2021 for the purpose of securing a flexible and stable means of financing in case the impact of COVID-19 on its business is prolonged.
The Company agreed to the Amendment to set the total maximum loan amount at 35 billion yen after discussions with participating financial institutions based on the financing plan in light of the subsequent capital increase through public offering and the improvement of the business environment after the lifting of the emergency declaration.
Summary of the Commitment Line Agreements after the Amendment
① Contract Type
Commitment line agreement on a syndicate loan format
② Commitment Amount
JPY35bn in total (from JPY70bn in total)
③ The Amendment Date
December 30, 2021
④ Commitment Deadline
February 12, 2024
⑤ Loan Period
Within 1 month for each loan
⑥ Interest Rate
TIBOR + Spread
⑦ Interest Payment
Payment on the maturity date for each loan
⑧ Use of Funds
Operating capital
⑨ Collateral
Not applicable
⑩ Guarantee
Skylark Restaurants Co., Ltd
⑪ Arranger/Agent
Mizuho Bank, Ltd.
⑫ Financial Covenants
(1) Maintenance of net assets
The amount of net assets on consolidated balance sheet at each half-
year end and fiscal year end shall be maintained at the below
amounts or higher.
From June 2021 to June 2023: JPY70bn
December 2023 and thereafter: JPY100bn
(2) Maintenance of profit
The consolidated profit or loss before tax (impairment amount for
goodwill and temporary transaction cost for the Commitment Line
Agreement can be excluded) at each fiscal year end shall not be
loss for two consecutive fiscal years.
Upper limit of net leverage ratio (1)
The net leverage ratio at each quarter end shall be at the below or
lower.
December 2021:
5.50
March 2022:
5.25
June 2022:
5.00
September 2022:
4.75
December 2022 and March 2023:
4.50
June 2023 and September 2023:
4.25
December 2023:
4.00
⑬ Participant Financial Institutions
Mizuho Bank, Ltd
MUFG Bank, Ltd.
Sumitomo Mitsui Banking Corporation
The Norinchukin Bank
Sumitomo Mitsui Trust Bank, Ltd.
Net leverage ratio = Consolidated net debt/Consolidated EBITDA for the previous 12 months "Consolidated EBITDA" under the Commitment Line Agreement refers to the consolidated operating income under the International Financial Reporting Standards as adjusted based on the depreciation, amortization, and non-cash expenditures subtracted in the calculation of consolidated operating income, as well as other items as required under the arrangements with the financial institutions which are the lenders under the Commitment Line Agreement.
3. Future Outlook
Upon the aforementioned transaction, no significant impact on business performance is anticipated.
End
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Disclaimer
Skylark Co. Ltd. published this content on 27 December 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 December 2021 06:06:13 UTC.
Skylark Holdings Co Ltd, former Skylark Co Ltd is primarily engaged in the restaurant business and also engaged in the development of businesses such as food sales and support for group companies. In the restaurant business, in addition to developing family restaurants and buffets in Japan and selling food products, The Company also develops restaurants overseas. The restaurant brands include Gusto, Bamiyan, Syabuyo, Jonathan's, Yumean, Steak Gusto, Karayoshi, Aiya, Musashi No Mori Coffee, Grazie Gardens, Totoyamichi, chawan, Tonkaratei, La Ohana and others. Other businesses include food sales, food delivery, store cleaning and maintenance, store product delivery, and linen supply support businesses for group companies.
SKYLARK HOLDINGS CO., LTD. 
