TYO:5036

Japan Business Systems Secures 3 Billion Yen Syndicated Commitment Line with Financial Covenant

Japan Business Systems (TYO:5036) to enter into a 3 billion yen, syndicated commitment line agreement with Sumitomo Mitsui Financial (TYO:8316), Sumitomo Mitsui Banking as arranger and agent.The facility, scheduled for signing on July 28, carries a one-year term extendable up to two times with interest at TIBOR plus a spread, according to a Tokyo bourse filing on Tuesday.The agreement imposes two financial covenants, including maintaining non-consolidated net assets at no less than 75% of the higher of the fiscal year-end September or the prior year-end, and avoiding negative ordinary income for two consecutive fiscal years.