-- Sumitomo Forestry (TYO:1911) has signed a loan agreement for up to 835.1 billion yen to fund its acquisition of U.S. homebuilder Tri Pointe Homes, according to a Thursday filing on the Tokyo Stock Exchange.
The loan from Sumitomo Mitsui Banking Corporation is scheduled for disbursement on May 11 and matures in May 2027. The facility carries a floating interest rate and includes financial covenants tied to net asset levels and credit ratings.
Sumitomo Forestry said the financing will cover the purchase of Tri Pointe Homes shares, refinancing of existing debt and related costs. The acquisition price based on $47 per share is expected to total about 630 billion yen, excluding related expenses.
The company said it plans to refinance the bridge loan through long-term financing within about one year.