 TAKEFUJI CORPORATION 15-1 Nishi-Shinjuku 8-chome,Shinjuku-ku, Tokyo 163-8654 Japan
April 28, 2005
| For release | Immediately |
| Representative | Hikaru Kondo, President |
| Contact | Investor Relations |
| Tel: 81-3-3365-8011
Fax: 81-3-3365-8070 |
| Stock Code No. 8564 TYOSE |
Takefuji Corporation Executes Defeasance
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Takefuji Corporation ("the Company") announced today the execution of defeasance worth 60 billion yen on April 28, 2005 for the following unsecured straight bonds issued by the Company.
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Notes
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| 1. Unsecured straight bonds concerned |
| | Takefuji Corporation second issue of unsecured straight bonds due 2007 |
| | Coupon: 2.06% |
| | Issue date: March 23, 2000 |
| | Redemption date: March 23, 2007 |
| | Issue amount: 30 billion yen |
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| | Takefuji Corporation fourth issue of unsecured straight bonds due 2007 |
| | Coupon: 2.06% |
| | Issue date: June 22, 2000 |
| | Redemption date: June 22, 2007 |
| | Issue amount: 30 billion yen
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| 2. Affect on the Company's financial results for FY2005 |
| | Execution of such defeasance will reduce the Company's interests on bonds by approximately 1.2 billion yen for FY2005 ending March 31, 2006. At the same time, the results will account for the amount equivalent to interests to be paid in the future as a loss on redemption of 2.7 billion yen. Accordingly, it will reduce net profit before tax by approximately 1.5 billion yen for FY2005. Those financial expenses and extraordinary losses have been included in the forecast business results for the March 2006, which was announced on April 27, 2005. Furthermore, we expect interests on bonds will decrease in and after next fiscal year. |
<Reference> |
Defeasance:
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A process through which liabilities on corporate bonds are eliminated from a corporate balance sheet by (1) depositing a sufficient amount of funds to a trust account and (2) having a contract for a financial institution to assume the debt.
After defeasance, the debt will appear as contingent liabilities in the financial statement, since the Company's redemption obligation to bondholders is carried through to the redemption date for the corporate bond.
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by Takefuji co.
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