Bulletin: Orix Corp.'s Proposed Subordinated Bonds Assessed As Having Intermediate Equity Content

TOKYO (S&P Global Ratings) Feb. 19, 2021--S&P Global Ratings today said it will classify Orix Corp.'s (A-/Negative/--) proposed subordinated bonds as having intermediate equity content. Orix on Feb. 19 disclosed a plan to issue subordinated bonds to replace an existing subordinated loan. The combined issue amount for these bonds--series three and series four--is ¥60 billion. We will classify the bonds as having intermediate equity content until the first callable date in 2026 for series three and until the first callable date in 2031 for series four. The characteristics of the subordinated bonds--the issuer's option to defer interest payments, sufficient permanence until effective maturity, and subordination in liquidation or bankruptcy proceedings--meet our standards for deeming them as having intermediate equity content.

...February 18, 2021 TOKYO (S&P Global Ratings) Feb. 19, 2021--S&P Global Ratings today said it will classify Orix Corp.'s (A-/Negative/--) proposed subordinated bonds as having intermediate equity content. Orix on Feb. 19 disclosed a plan to issue subordinated bonds to replace an existing subordinated loan. The combined issue amount for these bonds--series three and series four--is Ñ60 billion. We will classify the bonds as having intermediate equity content until the first callable date in 2026 for series three and until the first callable date in 2031 for series four. The characteristics of the subordinated bonds--the issuer's option to defer interest payments, sufficient permanence until effective maturity, and subordination in liquidation or bankruptcy proceedings--meet our standards for deeming them as having intermediate equity content. Orix retains the option to defer interest payments on the bonds. Any outstanding deferred interest is cumulative and will be settled in cash if the...

Bulletin