Kanamoto Signs 2nd Revolving Credit Facility Agreement with Term-out Option

2011/2/16 in Japan|Page 1/2

Wednesday, February 16, 2011

For Immediate Release
Kanamoto Company, Limited
Stock Code 9678
Tokyo Stock Exchange 1st Section; Sapporo Stock Exchange
Nobuhito Utatsu
Director and Corporate Officer, Division Manager, Accounting
Division< Contact for inquiries concerning this material >Yuichi Takayama
IR & Public Relations Section Manager, Office of the President
Telephone: + 81 – 11 – 209 – 1631

Kanamoto Signs 2nd Revolving Credit FacilityAgreement with Term-out Option
Kanamoto Co., Ltd. (Kanchu Kanamoto, President; Head Office: Sapporo, Japan), Japan’s leading
construction equipment rental company, has signed a revolving credit facility agreement with a term-out
option for a maximum funding limit of 12.0 billion yen. The Bank of Tokyo-Mitsubishi UFJ, Ltd. was theArranger and Mitsubishi UFJ Trust and Banking Corporation and Mizuho Corporate Bank, Ltd. wereCo-Arrangers for the facility. Details are provided below.
1． Reason for establishing the revolving credit facility with term-out option
To ensure a stable, flexible financing facility
Because Kanamoto’s principal business in construction equipment rentals requires a substantial amountof capital investment, the Company’s interest-bearing debt burden is quite large compared to most firms
managing a flow-type business. Consequently from the viewpoint of the need to ensure a financing facility
that considers stability, flexibility and funding costs, and as a means to procure on a timely basis the funds
required to respond to its rapidly changing industry and develop its business in other countries, theCompany decided to adopt this funding facility in order to maintain an appropriate balance of readily
available cash and deposits while continuing to restrain interest-bearing debt to the extent possible.
2． Commitment facility details
Revolving credit line limit:
Agreement signing date:Commitment period:
Termoutborrowing
maturity:
Arrangers:

Agent:
Syndicate group:

12.0 billion yen
February 16, 2011
366 days (February 21, 2011 – February 21, 2012)
February 21, 2017
Arranger:
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Co-Arrangers: Mitsubishi UFJ Trust and Banking Corporation
Mizuho Corporate Bank, Ltd.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
The Bank of Tokyo-Mitsubishi UFJ, Ltd., Mitsubishi UFJ Trust andBanking Corporation, Mizuho Corporate Bank, Ltd. , North PacificBank, Ltd.
The Hokkaido Bank, Ltd., JA -Hokkaido Shinren, The Norinchukin
Bank, The 77 Bank, Ltd., The Daishi Bank, Ltd.,

Kanamoto Signs 2nd Revolving Credit Facility Agreement with Term-out Option

2011/2/16 in Japan|Page 2/2

(New syndicate group members)
The Akita Bank, Ltd., Mizuho Trust & Banking Co., Ltd., The Bankof Fukuoka, Ltd., The Aomori Bank, Ltd., The Nishi-Nippon City
Bank, Ltd.
(Reference)* Description of a revolving credit facility with term-out option
A revolving credit facility with term-out option refers to an agreement under which a borrower can use afunding facility to flexibly borrow and repay funds under a credit line during the commitment period, thenshift the outstanding balance at the end of the commitment period to debt with a fixed-term maturity. As aresult, a company can procure funds initially at short-term rates and reduce its funding cost, while
maintaining its interest-bearing debt and cash on hand and deposit balances at appropriate levels, byprocuring funding on a timely basis.
End