Hulic: Notice regarding the issuance of subordinated bonds by replacement public offering PDF25KBNEW







July 28, 2022

To all concerned parties,

Company Name:

Hulic Co., Ltd.

(TSE Prime market,

securities code 3003)

Representing:

Takaya Maeda

President, Deputy Director

Requests:

Shin Itō

Deputy Managing Director, Head of

Corporate & Investor Communication

Relations Department

Call:

+81-3-5623-8102

Notice relating to the issue of subordinated bonds by public offer

for replacement

TOKYO, July 28, 2022 – Hulic Co., Ltd. considered a public offering of subordinated bonds (the “Hybrid Bonds”) and financing through a subordinated loan (the “Loan”). Among these, Hulic hereby announces that it has decided to issue the hybrid bonds as follows:

1. Purpose and context of the hybrid bond issue

The Hulic Group operates the real estate leasing business as its core business, pursuing growth strategies focusing on “driving innovation and accelerating progress” while ensuring an optimal balance of “PL Growth” , “Profitability”, “BS Soundness” and “Productivity (efficiency).” After formulating a long-term management plan (2020 to 2029) targeting “ordinary income of 180 billion yen” by 2029, the group is promoting steady growth to achieve the goal.

Under such circumstances, Hulic has considered replacing its existing hybrid financing and has decided to issue the hybrid bonds as a way to raise funds that will support growth and strengthen its capital base while avoiding a decline in capital efficiency caused by diluting equity, with the objective of evolving its business model by focusing on real estate rental activities and continuously improving the value of the company.

The maximum amount of hybrid financing combining the hybrid bonds and the loan will be 150 billion yen. The amount of each category will be determined based on various factors such as demand and market conditions.

Note: The purpose of this press release is to make a general public announcement regarding the issuance of subordinated notes by Hulic Co., Ltd. through a public offering in Japan. It has not been prepared for the purpose of offering or soliciting an offer to purchase or subscribe for securities of Hulic Co., Ltd. The foregoing securities will not be or have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption. registration requirements thereunder.

Summary of existing hybrid financing to be replaced

Last name

1st series of unsecured

Subordinated loan

subordinated bonds with

optional interest deferral and

prepayment clauses

Early redemption date

January 26, 2023 (diet)

March 31, 2023 (plan)

Prepayment amount

50 billion yen

100 billion yen

1. Characteristics of the Hybrid Bonds

Hybrid bonds are positioned between debt and equity. Although they are classified as a financial liability and will not result in the dilution of existing shares, they have characteristics similar to shares due to their terms and conditions, including a very long maturity, an option to defer interest payments, and subordination in liquidation and bankruptcy proceedings. Hulic therefore expects 50% of the funds to be raised by the

Hybrid bonds will be recognized as equity by a rating agency(Japan Credit Rating Agency,

Ltd).

2. Schedule

Hulic today filed the amendment to the pre-registration statement with the general manager of the Kanto local finance office for the issuance of the hybrid bonds. Hulic appointed Mizuho Securities Co., Ltd. as bookrunner, and Nomura Securities Co. and Daiwa Securities Co. Ltd. as co-lead managers for the hybrid bonds. Hulic will determine the issue amount, interest rate and other terms by comprehensively considering various factors such as demand and market conditions.

Note: The purpose of this press release is to make a general public announcement regarding the issuance of subordinated notes by Hulic Co., Ltd. through a public offering in Japan. It has not been prepared for the purpose of offering or soliciting an offer to purchase or subscribe for securities of Hulic Co., Ltd. The foregoing securities will not be or have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption. registration requirements thereunder.

Disclaimer

Hulic Co.Ltd. published this content on July 28, 2022 and is solely responsible for the information contained therein. Distributed by Audienceunedited and unmodified, on July 28, 2022 06:27:07 UTC.

Public now 2022

All news about HULIC CO., LTD.

2022 sales 460B
3,424 million
3,424 million
Net income 2022 75,983 million
565 million
565 million
Net debt 2022 986B
7,330M
7,330M
PER 2022 ratio 10.4x
2022 return 3.81%
Capitalization 805B
5,866 million
5,987 million
EV / Sales 2022 3.89x
EV / Sales 2023 4.49x
# of employees 1,496
Floating 64.4%


Duration :

Period :




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Medium consensus HOLD
Number of analysts seven
Last closing price JPY1,058.00
Average target price ¥1,227.14
Average Spread / Target 16.0%


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