Sumitomo Forestry Signs 106.5 Billion Yen Subordinated Syndicated Loan

MT Newswires Live
08/31

Sumitomo Forestry (TYO:1911) has entered into a syndicated loan agreement with subordination provisions totaling 106.5 billion yen to partially repay the bridge loan used for its acquisition of U.S.-based Tri Pointe Homes.

The new loans are split into a 69 billion yen Tranche A and a 37.5 billion yen Tranche B, and structured as hybrid financing with equity-like characteristics, according to a Tokyo bourse filing on Monday.

The company expects 50% of the funds raised to be recognized as equity credit by Rating and Investment Information and Japan Credit Rating Agency.

The loan is set to be drawn down on Sept. 4. The company may voluntarily prepay Tranche A from Sept. 4, 2032, and Tranche B from Sept. 4, 2034.

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