create restaurants: Notice of Borrowing and Repayment of Funds







Press release: create restaurants holdings inc.

(3387 IS1)

February 28, 2022

Notice of Borrowing and Repaying Funds

create restaurants holdings inc. announces that we have repaid our short-term borrowings and our perpetual subordinated loans as described below, while we have restored our line of commitment and borrowed long-term funds.

1.Purpose and context

Given the impact of COVID-19 on our business, we have borrowed funds (hereinafter referred to as the “COVID-19 Loan”) and established lines of commitment from March to May 2020 to stabilize the management of the group. In addition, in February 2021, we entered into a subordinated perpetual loan (the “Subordinated Perpetual Loan”) to strengthen our capital base. Thereafter, the impact of COVID-19 kept fluctuating. Currently, local governments in thirty-one prefectures have declared the strictest COVID-19 measures to each region. These measures affect the income of restaurateurs, including ourselves. Nevertheless, we have been able to strengthen operations to reduce fixed costs and completely close unprofitable outlets while earnestly responding to government and local government requests to shorten opening hours and ban serving alcoholic beverages. . At the same time, we are continuing the transition to a leaner cost structure; we have been able to put in place a system that can respond to the decline in income due to the impact of COVID-19 by submitting applications for Employment Adjustment Grants and Grant to Shorten Operating Hours, etc.

In the medium-term management plan, we considered the period since fiscal year 2002/23 as the period of regrowth following the damage of COVID-19. Financially, we have reduced the interest rate burden and improved the stability of our finances through debt reduction by completing the following series of borrowings today.

First, we repaid 30.6 billion yen of short-term borrowings excluding borrowings from certain subsidiaries of the COVID-19 loan and significantly reduced current liabilities. At the same time, given the continued impact of COVID-19, we have reinstated an increased line of commitment to flexibly secure funds if needed. With respect to the Perpetual Subordinated Loan, given the company’s current performance outlook and the fact that we raised 16.2 billion yen through the issuance of new shares in November and December 2021, we have repaid in full the amount of 15 billion yen together with cash on hand. In addition, we borrowed 10 billion yen for long-term working capital to improve financial stability.

2. Overview of borrowings

Syndicated loan

Loans from

Development

Tranche A

Tranche B

Bank of Japan Inc.

(1)

Rising

7 billion yen

6 billion yen

4 billion yen

(2)

Term

1 year

7 years

7 years

(3)

Form of borrowing

line of engagement

term loan

term loan

(4)

Effective date

February 28, 2022

February 28, 2022

February 28, 2022

borrowing date

(5)

Collateral

Any

Any

Any

(6)

enlarge

Mizuho Bank, Ltd.

(7)

Co-allergen

Sumitomo Mitsui Banking Corporation

(8)

Agent

Mizuho Bank, Ltd.

(9)

Participant

Several financial institutions, including

financial

Mizuho Bank, Ltd. and Sumitomo Mitsui

establishments

Banking company, etc.

3. Future prospects

The above series of transactions had a minor impact on the consolidated results for the year ended February 2022.

Warning

Create Restaurant Holdings Inc. published this content on March 18, 2022 and is solely responsible for the information contained therein. Distributed by publicunedited and unmodified, on March 18, 2022 04:00:04 UTC.

Public now 2022

All the latest from CREATE RESTAURANTS HOLDINGS INC.

2022 sales 78,820 million
665 million
665 million
2022 net income 6,700m
56.6 million
56.6 million
Net debt 2022

PER 2022 ratio 22.4x
2022 return 0.63%
Capitalization 150B
1,270 million
1,270 million
capi. / Sales 2022 1.91x
capi. / Sales 2023 1.24x
# of employees 4,144
Floating 50.7%

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Trends in technical analysis CREATE RESTAURANTS HOLDINGS INC.

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Evolution of the income statement

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Medium consensus TO BUY
Number of analysts 1
Last closing price

¥716.00

Average target price

JPY1,100.00

Average Spread / Target 53.6%


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