October 15, 2021
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”) as described below.
1.

The Debt Financing(1) Details of the Debt Financing (Note 1)
InterestTerm(Note 2)

Lenders

Principal

Borrowing

Rates

Date of

Borrowing

Repaymamounts(Note5)

Borrowing

Methodent Date(Note6)
A syndicate of(Note 7)

Sumitomo Mitsui

3,785

Banking Corporation

millionand Mizuho Bank,

yen

Ltd. as arrangers

individual

rate (JPY

term loan

3-monthagreement

TIBOR)＋A syndicate oflenders with
Sumitomo Mitsui

3,115

Banking Corporation

millionand Mizuho Bank,

yen

Ltd. as arrangers(Note 4)

MethodOctober
21, 2024

dated
October 18,

Long-term
borrowings

Security

based on theinterest

0.40 %(Note 3)nt

Borrowings

Baselenders with

RepaymeOctober

2021, based

20, 2021

on the basic

Baseagreement

interest

dated July 29,

rate (JPY2020 with3-month

SumitomoTIBOR)＋

Mitsui0.60 %

Banking

October

Lump sum
repaymentonprincipal
repaymentdate(Note 8)

Unsecuredand
Unguaranteed

20, 2026

Corporationas agent.

(Note 1) This information is based on the notice on results of consideration regarding the Debt Financing issued by thearrangers. However, it does not guarantee that the actual financing will be conducted as described above, because
the lenders need to go through prescribed screening procedures..
(Note 2) 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”.

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(Note 3) The syndicate of lenders consists of Sumitomo Mitsui Banking Corporation, Mizuho Bank, Ltd., Shinsei Bank,Limited, Sumitomo Mitsui Trust Bank, Limited., Aozora Bank, Ltd., Resona Bank, Limited, The Bank of Fukuoka,
Ltd, Mizuho Trust & Banking Co., Ltd and The DaiIchi Life Insurance Company.
(Note 4) The syndicate of lenders consists of Sumitomo Mitsui Banking Corporation, Mizuho Bank, Ltd., Shinsei Bank,Limited, Sumitomo Mitsui Trust Bank, Limited., Aozora Bank, Ltd., Resona Bank, Limited and Mizuho Trust &Banking Co., Ltd.
(Note 5) Financing fees and other charges payable to the lenders are not included.
(Note 6) The first interest payment date is October 29, 2021, 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, thebase interest rate applicable to the calculation period for payment of interest on any given interest payment dateis 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 interest rate swap agreements, etc.
(Note 7) 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 8) 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 9) 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 amounts procured by the Debt Financing will be applied to the repayment of a portion (JPY 6,900 million) of theJPY7,300 million long-term borrowings described in the press release dated April 12, 2018 entitled “NoticeConcerning Debt Financing and Repayment of Borrowings”, which will come due on October 20, 2021 (the Debt
Financing together with such repayment of the existing borrowing shall be referred to as the “Refinancing”). The
difference between the existing borrowing of JPY 7,300 million and the Debt Financing of JPY 6,900 million of JPY
400 million will be repaid using the funds procured by issue of investment corporation bonds as described in thepress release dated September 16, 2021 entitled “Notice Concerning Issuance of Investment Corporation Bonds”
SAR will consider fixing interest rate payments by entering into interest rate swap agreements etc. for the Debt
Financing in order to improve stability of its financial foundation.

(3)i)

Total amount of funds to be procured by the Debt Financing, use of funds and schedule of expenditures
Amount of funds to be procured
Total 6,900 million yen

2ii)

(4)

Specific use of funds to be procured and schedule of expenditures
AmountSpecific use of funds
million yen
To be allocated to repayment of the Existing Loans stated
6,900
in Section (2) above.

Schedule ofExpenditures
October 20, 2021

Status of Borrowings etc. after the Refinancing

Short-term borrowings (Note)
Long-term borrowings (Note)
Total borrowings
Investment corporation bonds
Total borrowings and Investment corporation bonds

Before theRefinancing－89,440
89,4401,00090,440(Unit: million yen)
After theChange
Refinancing
0－
89,040-400
89,040-400
1,000－
90,040-400

2.

Future outlook
The impact of the Refinancing on the operating results is immaterial, and the impact on the forecast ofoperating results for the fiscal period ending January 31, 2022 (August 1, 2021 to January 31, 2022) and thefiscal period ending July 31, 2022 (February 1, 2022 to July 31, 2022) which were announced by SAR in the“(REIT) Financial Report for Fiscal Period Ended July 31, 2021” dated September 14, 2021 is minimal, andthere are no changes to the forecast.

3.

Other matters required for investors to appropriately understand and evaluate the above information
In conjunction with the risks related to the Refinancings, there are no changes to the section “Part 2.
Reference Information, 2. Supplementary Information on Reference Documents, 3. Investment Risks” foundin the securities report (Japanese only) submitted on August 2, 2021.

* Star Asia Investment Corporation website address: http://starasia-reit.com/en/

This is an English translation of the announcement in Japanese dated October 15, 2021.
However, no assurance or warranties are given for the completeness or accuracy of this English translation.

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