August 6, 2020
[English Translation]
Notice Regarding Extension of Repayment Due Date for Short-Term Loans
As stated in the "Notice Concerning the Borrowing of Funds" dated August 7, 2019 and, separately, September 2, 2019, Japan Display Inc. ("JDI") borrowed funds based on short-term loan agreements with INCJ, Ltd. ("INCJ") concluded on August 7, 2019 and September 2, 2019 (the "Borrowing"). As regards the Borrowing, JDI announced that the repayment due dates for the two loan agreements would be the first anniversary of each of the loan execution dates. However, today agreements were reached with INCJ according to which the repayment due date for the loan agreement dated August 7, 2019 will be extended by one year and the repayment due date for the loan agreement dated September 2, 2019 will be extended by two years.
1. Reason for Extension of the Repayment Due Date
As stated in the "Notice Concerning Conclusion of Capital Alliance Agreement, Issuance of Class D Preferred Shares and Stock Acquisition Rights through Third-party Allotment, and Partial Amendment of Articles of Incorporation" dated July 21, 2020, on January 31, 2020 JDI received a notice from INCJ stating that if JDI so requests, INCJ is ready to extend the repayment due date of the short-term loan dated August 7, 2019 by one year and extend the repayment due date of the short-term loan dated September 2, 2019 by up to two years. In view of the impact of the spread of the coronavirus pandemic on business performance, JDI has decided that it is important to secure cash on hand, and therefore submitted a request to INCJ to extend the loan repayment due date, resulting in the extended repayment agreement described below.
2. Summary of Extension of the Repayment Due Date
Short-term loan | Short-term loan | |
dated August 7, 2019 | dated September 2, 2019 | |
Lender | INCJ, Ltd. | |
Address: 1-4-1 Marunouchi, Chiyoda-ku Tokyo | ||
Representative Director and Chairman (CEO): Toshiyuki Shiga | ||
Representative Director and President (COO): Mikihide Katsumata | ||
Loan amount | JPY 20 billion | JPY 20 billion |
Interest rate | TIBOR + spread (fixed-rate interest) | TIBOR + spread (fixed-rate interest) |
1 |
Loan execution date | August 8, 2019 | September 3, 2019 |
Previous repayment | August 8, 2020 (prepayment before | September 3, 2020 (prepayment before |
due date | maturity is permissible) | maturity is permissible) |
Extended repayment | August 8, 2021 (prepayment before | September 3, 2022 (prepayment before |
due date | maturity is permissible) | maturity is permissible) |
Security | The borrowing is secured | The borrowing is secured |
Note: As of August 6, 2020, INCJ is the second major shareholder of JDI, and one director from INCJ sits on JDI's board of directors.
3. Future Outlook
The impact of the extension of the loan repayment due dates on JDI's financial results for FY 2020 is expected to be immaterial.
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The information contained in the press release is as of the date of the announcement and is subject to change without prior notice. Of the information contained in this press release, our forecasts, plans and other forward-looking statements are based on our analysis and judgments subject to the information available to us as of the date of announcement, and actual results may differ materially from those expressed or implied by such forward-looking statements.
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Japan Display Inc. published this content on 06 August 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 06 August 2020 08:03:05 UTC