Ichinen takes on US$140.2M loan to fund two acquisitions
What's the deal? Ichinen HoldingsDealroom has a profile for this one. Try Dealroom → has signed an US$140.2M loan to fund the acquisition of Mitsubishi Shoji Agri-Service Corporation — now trading as Ichinen Mac — and MC Ferticom. The uncollateralised financing runs through a trust bank and other counterparties.
The structure: The loan splits into two tranches. Tranche A, worth US$24.8M, matures on September 30, 2036; Tranche B, worth US$115.4M, matures on September 30, 2029.
Where the money goes: Beyond buying the share stakes, Ichinen will use the proceeds to secure working capital for the two new subsidiaries and their operations.
The fine print: The agreement carries financial covenants. Ichinen must keep certain net asset thresholds on its consolidated and non-consolidated balance sheets, avoid consecutive years of ordinary losses, and hold 100% of Ichinen Mac and at least 93.16% of MC Ferticom.
What's next? Ichinen said the impact of the agreement on its earnings forecast is still under review.
The signal: The debt-funded, dual-target deal shows Ichinen leaning on borrowing to expand its subsidiary base in agri-services, with covenants tying its growth plans to steady profitability.
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