Notice Regarding Early Repayment of Subordinated Loan
April 28, 2025
Resonac Holdings Corporation
Resonac Holdings Corporation (President: Hidehito Takahashi, hereinafter referred to as "REH") hereby announces that it has decided to make an early repayment of the subordinated loan (hereinafter referred to as "the subordinated loan") that was contracted on April 27, 2020, effective as of April 28, 2025, as outlined below.
1. Reason for early repayment
The subordinated loan has contributed to improving the financial position of REH, as evidenced by the recognition of 50% capital adequacy by Japan Credit Rating Agency, Ltd.
Since obtaining the subordinated loan, REH has focused its management resources on the promising semiconductor and electronic materials business, reformed its business portfolio, slimmed its assets through the sale of shares held as cross-shareholdings, thereby improving its financial position and strengthened profitability.
As a result, REH satisfied the criteria stipulated in the exception clause under the replacement terms*1. Thus REH has decided to implement early repayment using its own funds and loan financing, aiming to enhance its corporate value further.
2. Details of the early repayment of the subordinated loan
| Early repayment date | April 28, 2025 |
| Early repayment amount | 137.5 billion yen*2 |
| Reason for early repayment | Pursuant to the early repayment clause of the subordinated loan |
3. Impact on the consolidated performance of the company
The impact of the aforementioned series of transactions on the consolidated performance forecast for REH for the fiscal year ending in December 2025 is insignificant.
- *1: Clause stating that "In the event of early repayment, the funds should be procured through means approved by the rating agencies as having capital nature equal to or greater than the existing subordinated loan."
- *2: The initially procured amount was 275 billion yen. Of this, 137.5 billion yen was repaid early as of July 31, 2024, and for this repayment, a new subordinated loan with special covenants amounting to 137.5 billion yen was procured as of July 31, 2024.
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