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Avex Inc. ( (JP:7860) ) has issued an announcement.
Avex Inc. has approved a plan for newly established U.S. subsidiary Avex Song Fund 1 LLC to enter into a senior secured credit facility of up to USD 50 million with City National Bank. The non-recourse loan, secured by shares of the music-rights holding subsidiary, will finance the acquisition of music catalogs in the U.S. and other overseas regions, along with related working capital.
The five-year facility comes with financial covenants, including maintaining loan-to-value at or below 60%, with the threshold tightening to as low as 30% if revenues fall short of prior projections, and a fixed charge coverage ratio of at least 1.1x. Avex expects only a minor impact on consolidated results for the year ending March 31, 2026, but the structure underscores disciplined leverage and risk control as the group accelerates its push into international music-rights investment.
The most recent analyst rating on (JP:7860) stock is a Hold with a Yen1215.00 price target. To see the full list of analyst forecasts on Avex Inc. stock, see the JP:7860 Stock Forecast page.
More about Avex Inc.
Avex Inc., listed on the TSE Prime Market, operates in the entertainment industry with a focus on music and related rights. Through its subsidiaries, the company manages, operates, and invests in music catalogs, expanding its presence in the United States and other overseas markets to strengthen its global music IP portfolio.
Average Trading Volume: 198,366
Technical Sentiment Signal: Hold
Current Market Cap: Yen55.42B
Learn more about 7860 stock on TipRanks’ Stock Analysis page.