CAC Holdings, the Tokyo Prime-listed IT services group, told investors on July 15 that it had forgotten to disclose a ¥5bn loan it signed nearly four months earlier. The company's board approved the borrowing on March 24, the syndicate agreement itself is dated March 26, and the loan was executed on March 31. Only after the gap was discovered did CAC Holdings file the notice, apologizing for the delay.
The facility is unsecured and arranged by a syndicate led by Sumitomo Mitsui Banking Corporation, running for a decade to March 31, 2036. CAC Holdings says the money is earmarked to meet "funding needs related to M&A investment," language that points to acquisition financing rather than routine working capital.
Two covenants come attached. From the fiscal year ending December 2026 onward, CAC Holdings must keep consolidated net assets at or above 75% of the higher of two benchmarks: its net-asset level at the end of the year to December 2025, or the level at the end of the immediately preceding fiscal year. It must also avoid posting a consolidated ordinary loss in two consecutive fiscal years, starting with that same year.
CAC Holdings says the effect on its results for the year to December 2026 will be minor. The company has not explained why the disclosure sat unmade for nearly four months, saying only that the omission "was discovered" after the fact.