 TAKEFUJI CORPORATION 15-1 Nishi-Shinjuku 8-chome,Shinjuku-ku, Tokyo 163-8654 Japan
September 21, 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 to set up US$2 billion Commitment Facility
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As of September 21, 2005, Takefuji Corporation (the Company) announced that it has set up a commitment facility of US$2 billion (equivalent to approximately JPY 220 billion) with a term of 3 years (yearly renewable with the consent of relevant parties), utilizing beneficial interests backed by loan assets originated by the Company.
With the introduction of new true-sale trust structure, the Company achieved the removal of the financial covenants related to the corresponding contract. The new facility has been utilized partially to replace an existing US $ 1.46 billion of debt backed by the Company's loan assets.
This new facility is a sequel to the previous transaction executed as of July 15, 2005 with a US$1.5 billion (equivalent to approximately JPY 170 billion) commitment line, with US$ 0.5 billion drawn to date.
Up to date, the Company has diversified its funding sources including bond issuances in both domestic and global markets, and this facility is a part of such funding strategy. The Company will continue to secure access further to long-term funds. |
| 1. | Type of Facility | : | Committed facility utilizing beneficial interests backed by loan assets |
| 2. | Amount | : | Japanese Yen equivalent of US$ 2 billion |
| 3. | Date of Contract | : | September 21, 2005 |
| 4. | Term | : | (1) Commitment period: 3 years
(yearly renewable with the consent of relevant parties) |
| | | | (2) Term: Maximum 10 years after the first drawdown
(7-year revolving period plus 3-year redemption period) |
| 5. | Interest | : | Yen fixed interest rate set by interest currency swap transaction from US dollar LIBOR |
| 6. | Transferred collateral | : | Loan assets of Takefuji Corporation |
| 7. | Arranger | : | Merrill Lynch Japan Securities Co., Ltd. |
| 8. | Guarantor | : | MBIA Insurance Corporation
(rated Aaa by Moody's and AAA by S&P, Rating and Information, Inc. and Fitch) |
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by Takefuji co.
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