Print（PDF/144KB） Mar. 26, 2025 Finances
Notice Regarding Refinancing of Existing Borrowings Through a Syndicated Loan
Sumitomo Pharma Co., Ltd. (Head Office: Osaka, Japan; Representative Director, President, and CEO: Toru Kimura) announced today that as of today (March 26), the Company has decided to refinance its existing borrowings (hereinafter referred to as “the Refinancing”) through a syndicated loan (Tranche A: Term Loan, Tranche B: Commitment Line) (hereinafter referred to as “the Syndicated Loan Agreement”), as outlined below.
1. Purpose of the Refinancing
The Company has repaid a portion of existing borrowings, including a bridge loan for the acquisition of Myovant Sciences Ltd. as a wholly owned subsidiary and existing borrowings for the strategic alliance with Roivant Sciences Ltd. implemented in December 2019, totaling 331 billion yen, with the proceeds of 98 billion yen from the sale of Roivant Sciences Ltd. shares, and has entered into new syndicated loan agreements as detailed below. Through the Refinancing, the Company aims to resolve the breach of financial covenants that occurred in the fiscal year ended March 2024 and to stabilize its financial position.
2. Overview of the Syndicated Loan Agreement
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| Term Loan (Tranche A) |
Commitment Line (Tranche B) |
|
|---|---|---|
| Amount | 140.0 billion JPY | 93.0 billion JPY |
| Use of Funds | Refinancing of existing borrowings | Working capital |
| Loan/Commitment Period | March 31, 2025 – March 31, 2028 | |
| Repayment Method | Lump sum repayment on due date | |
| Presence of Collateral | None | |
| Joint Guarantor | Sumitomo Chemical Co., Ltd. | |
| Arranger & Agent | Sumitomo Mitsui Banking Corporation | |
| Co-Arranger | Sumitomo Mitsui Trust Bank, Limited | |
| Participating Financial Institutions | Sumitomo Mitsui Banking Corporation Sumitomo Mitsui Trust Bank, Limited The Norinchukin Bank Mizuho Bank, Ltd. MUFG Bank, Ltd. The Hyakujushi Bank, Ltd. Aozora Bank, Ltd. The Iyo Bank, Ltd. San ju San Bank, Ltd. The Shiga Bank, Ltd. Joyo Bank, Ltd. The Hiroshima Bank, Ltd. The Oita Bank, Ltd. The Chiba Bank, Ltd. The Nanto Bank, Ltd. The Kiyo Bank, Ltd. |
|
3. Future Outlook
The impact of this refinancing on the Company’s consolidated financial results for the fiscal year ending March 2025 is expected to be minimal.
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