Trial Holdings (141A): Refinancing finalized; spread undisclosed but somewhat reassuring

Research evidence excerpt

Trial Holdings (141A): Refinancing finalized; spread undisclosed but somewhat reassuring

Accessible version

Trial Holdings (141A)

Refinancing finalized; spread undisclosed

but somewhat reassuring

Maintain Rating: BUY | PO: 5,000 JPY | Price: 2,803 JPY

10-year loan period 23 June 2026

After the market close on Jun 23, Trial announced that it had decided to enter into a Equity

syndicated term loan agreement to refinance the ¥367.4bn in short-term borrowings

taken out for one year from Jul 2025. The loan period is 10 years. Arashi Nishizawa >> Research Analyst

BofAS Japan

Within MTP assumptions even after interest rate swaps +81arashi.nishizawa@bofa.com3 6225 6402

The borrowing rate is JBA Japanese Yen TIBOR (3 months) + spread. Trial also plans to Daisuke Aikawa >>

fix the interest rate on a portion of the borrowings through separate interest rate swaps. Research Analyst

While the specific spread is undisclosed, the borrowing rate appears to be within the BofAS+81 3 6225Japan7196

interest rate assumptions Trial used in its Medium-Term Management Plan (slightly daisuke.aikawa@bofa.com

above 3%), even after factoring in the planned interest rate swaps.

Within our estimates unless rates rise sharply Stock Data

Our estimates already assume ¥12.0bn in interest expense in FY6/27. As such, we

believe the impact remains within our estimates, unless interest rates rise sharply from Price 2,803 JPY

here. Trial also expects to record around ¥5.511bn in borrowing-related expenses Price Objective 5,000 JPY

associated with the refinancing as non-operating expenses in 4Q FY6/26, but this has Date Established 2-Jun-2026

already been incorporated into company guidance. Investment Opinion C-1-7

52-Week Range 1,996-4,840 JPY