February 16, 2023
For Immediate Release
Real Estate Investment Trust Securities Issuer
Star Asia Investment Corporation
Representative: Atsushi Kato, Executive Officer(Code: 3468)
Asset Management Company
Star Asia Investment Management Co., Ltd.
Representative:
Atsushi Kato
President and CEO
Contact:
Akiko Kanno
Director and CFO
TEL: +81-3-5425-1340

Notice Concerning Debt Financing (Refinancing)Star Asia Investment Corporation (“SAR”) announces today that it has decided to execute debt financings (the“Debt Financing” or “Refinancing”) as described below.
1.

Details of the Debt Financing
Method of Borrowings: Borrowings under individual term loan agreements signed on February 16, 2023
with the lenders described below.

Term(Note 1)

Lenders

Borrowingamounts

Interest Rates

Expected(Note 3)

Date of(Note 4)

Borrowings

Principal
Repayment

Repayment

Date

MethodSecurity(Note 5)

A syndicate ofBaselenders with
Sumitomo Mitsui
Banking
Corporation andMizuho Bank, Ltd.

interest

6,790
millionFloatingyen(Note 2)

borrowings

A syndicate of＋0.60 %Banking
Corporation andMizuho Bank, Ltd.
as arrangers

Lump sum
repayment onprincipalrepayment
date(Note 6)

February
20, 2023

Baselenders with
Sumitomo Mitsui

2028(JPY 3MTIBOR)

as arrangers

Long-term

April 28,

rateinterest

3,000
millionyen

Floatingrate(JPY 3M

UnsecuredandUnguaranteed

February28, 2029

TIBOR)＋0.70 %

(Note 2)

(Note 1) Borrowings with a repayment period of 1 year or less are classified as “short-term” and borrowings withrepayment periods exceeding 1 year are classified as “long-term”. The same applies below.
(Note 2) The syndicate of lenders consists of Sumitomo Mitsui Banking Corporation, Mizuho Bank, Ltd., Sumitomo Mitsui
Trust Bank, SBI Shinsei Bank, Limited, Aozora Bank, Ltd., Resona Bank, Limited., and THE BANK OF FUKUOKA, LTD.
(Note 3) Financing fees and other charges payable to the lenders are not included.

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(Note 4) The first interest payment date is March 31, 2023, and thereafter, interest payment dates are the last day of every
3-months and the principal repayment date. However, if such date is a non-business day, the interest payment
date shall be the immediately following business day, or if such date falls in the next month, the interest payment
date shall be the immediately preceding business day. For borrowings with floating interest rates, the baseinterest rate applicable to the calculation period for payment of interest on any given interest payment date is
the Japanese Yen TIBOR for 3 months as announced by JBA TIBOR Administration at 11 a.m. (Tokyo time, thesame applies hereinafter) or at the point of time after 11 a.m. and as close to 11 a.m. as possible, on the date
which is two business days prior to the immediately preceding interest payment date (or two business days before
the drawdown date for the first interest payment date). However, if no interest rates are found for thecorresponding interest calculation period, the base interest rate for the relevant period shall be calculated basedon the method set forth in the individual term loan agreement. For Japanese Yen TIBOR announced by the JBA
TIBOR Administration which is used as the base interest rate, please check with the JBA TIBOR Administration
website (http://www.jbatibor.or.jp/english/rate/) Concerning the Debt Financing, it is being considered to fix theinterest payments by entering into an interest rate swap agreement, etc.
(Note 5) If a principal repayment date is not a business day, repayment shall be made on the next business day; however,
if such date falls on the next month, repayment shall be made on the immediately preceding business day.
(Note 6) If certain conditions, such as advance notification in writing by SAR, are satisfied during the period between thedate of borrowing and the principal repayment date, SAR may prepay the borrowed amounts either in whole orin part prior to maturity.
(Note 7) Certain financial covenants, such as stipulating that certain financial figures should be maintained based on assets
and liabilities, are expected to be established for the Debt Financing.

2.

Reason for the Debt Financing
The proceeds from the Debt Refinancing will be appropriated to the early repayment of the JPY 5,100
million long-term borrowing on February 20, 2023, and repayment of the 4,690 million long-termborrowing to mature on February 20, 2023. For details, please refer to the press release announced by SAR
Corporation dated February 1, 2023 entitled “Notice Concerning Early Repayment of Borrowings” and thepress release announced by SAR Corporation dated January 12, 2018 entitled “Notice Concerning DebtFinancing”.

3.

Total amount of funds to be procured by the Debt Financing, use of funds and schedule of expenditures
I. Amount of funds to be procured
Total 9,790 million yen
II.

Specific use of funds to be procured and schedule of expenditures
Specific use of funds

Amountmillion yen

Scheduled date ofExpenditure

To be allocated to repayment of the existing loans stated inSection 2 above.

9,790

February 20, 2023

24.

Status of Borrowings etc. after the Refinancing(Unit: million yen)
Before theRefinancing(note)
Short-term borrowings
Long-term borrowings
Total borrowings
Investment corporation bonds
Total of borrowings andinvestment corporation bonds

After theRefinancing

Increase/Decrease－
95,84095,8401,000－
95,84095,8401,000－－－－

96,84096,840－5.

Future outlook
The impact of the refinancing on the operating results is insignificant, and there are no changes to theforecast of operating results for the fiscal period ending July 31, 2023 (February 1, 2023 to July 31, 2023)
which was announced by SAR in the press release entitled “Notice Concerning Revision to Forecasts forOperating Results and Distribution for the 15th Fiscal Period Ending July 31, 2023” dated February 1, 2023.
The summary financial report (kessan tanshin) for SAR’s 14th Fiscal Period ended January 1, 2023 (August 1,2022 to January 31, 2023) is scheduled to be disclosed on March 16, 2023.

6.

Other matters required for investors to appropriately understand and evaluate the above information
In conjunction with the risks related to the refinancing, there are no changes to Part 1. Fund Information,I. Overview of the Fund, 3. Investment Risks” stated in the securities report (Japanese only) submitted onOctober 28, 2022.
* Star Asia Investment Corporation website address: http://starasia-reit.com/en/

This is an English translation of the announcement in Japanese dated February 16, 2023.
However, no assurance or warranties are given for the completeness or accuracy of this English translation.

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