Notice Regarding Conclusion of Special Overdraft Agreement
SMS Co., Ltd. (the “Company”) hereby announces that SMS Financial Service Co., Ltd., a consolidated subsidiary of the Company, has resolved to enter into a credit agreement (the “Agreement”) with Sumitomo Mitsui Banking Corporation. The Company also announces that it has resolved to provide a parent company guarantee for the Agreement.
１. Purpose of concluding the Agreement
In “Kaipoke”, a management support platform for elderly/disability care operators, which is one of the SMS Group's core businesses, the Company provides factoring services to support the cash flow of elderly/disability care operators through its consolidated subsidiary, SMS Financial Service Co., Ltd. The purpose of concluding the Agreement is to secure financing for the growing transaction volume of factoring services and to optimize financing costs.
２．Outline of the Agreement
| (1) Lender | Sumitomo Mitsui Banking Corporation |
| (2) Contract holder | SMS Financial Service Co., Ltd. |
| (3) Type of agreement | Special overdraft agreement |
| (4) Borrowing limit | 10 billion yen |
| (5) Borrowing rate | Variable interest rate (base interest rate + spread) |
| (6) Date of the Agreement | October 10, 2024 |
| (7) Execution period | From October 10, 2024 to October 31, 2025 (scheduled to be renewed every year) |
| (8) Collateral, etc. | Unsecured, guaranteed by the Company |
３. Outlook
Borrowings under the Agreement are expected to be executed beginning in October 2024 to meet funding requirements associated with the provision of factoring services. The Agreement will not have any material impact on the Company’s consolidated financial results for the fiscal year ending March 2025.
Notice Regarding Conclusion of Special Overdraft Agreement