Announcement of Early Bank Loan Repayment and Commitment Line* Reassessment
DISCO Corporation (Headquarters: Ota-ku, Tokyo; President: Kazuma Sekiya) obtained a bank loan of ¥27 billion as of the end of March 2009 so as to be able to manage its business in a stable manner even if the recession were to continue for five years from the financial crisis occurred in fall 2008.
However, in accordance with an upturn in business environment, the Company repaid ¥12 billion from the loan in September 2009 before the due date, which made the total remaining amount of the bank loan about ¥15 billion at the end of the second quarter. Furthermore, thanks to the payment of the Euro-yen convertible bonds with stock acquisition rights (¥10 billion) issued in the third quarter, DISCO determined that the Company had sufficient available cash in the fourth quarter and then further repaid ¥12 billion of the bank debt ahead of the schedule. Therefore, the remainder is ¥3 billion, which is scheduled to be repaid prematurely by the end of June when no disadvantage is caused under the terms of conditions of the loan contract.
Also the commitment line of ¥12 billion, which was set at the same time when repaying the borrowing in September last year, was reviewed in order to minimize costs for borrowing. As a result, it has been determined that the existing commitment line will be canceled and a new commitment line contract will be signed for an amount of ¥17 billion for a period of three years with a possible extension up to six years, without increasing the annual costs, focusing even more on future development.
DISCO continues the efforts to make its financial standing more solid, thereby strengthening business operations.
||The Bank of Japan defines this term as "a contract between a bank and its corporate clients, which legally obliges the bank to extend loans to the clients upon their request up to the amount that is agreed at the time of the contract within the term of validity that is also agreed at the time of the contract".