March 2, 2020
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
Star Asia Investment Corporation (“SAR”) announces today that it has decided on debt financing (the “DebtFinancing”), as described below.
1.

Details of the Debt Financing
Borrowing based on the individual term loan agreement scheduled to be dated March 2, 2020, based on the basic
agreement dated April 15, 2016 under which Sumitomo Mitsui Banking Corporation acts as agent.
Term

Lenders

Borrowingamount(millionyen)

Interest
rate(Note 2)
(Note 3)

Date ofborrowing

Maturitydate(Note 4)

Repayment method(Note 5)(million yen)

Security

Repayment in installments:(1)

July 20, 2020
Repayment amount:
720

Long-term(Note 1)

Sumitomo
Mitsui BankingCorporationand
Mizuho Bank,Ltd.

3,460

Base
interest
rate+0.20%

March 13,2020

March 22,2021(2)

December 21, 2020
Repayment Amount:
1,080

(3)

UnsecuredandUnguaranteed

March 22, 2021
Repayment amount:
Remaininng balance(Note 1)Long-term refers to borrowings due after one year.

(Note 2)Financing fees and other charges to the lenders are not included.

(Note 3)

The first interest payment date is April 20, 2020 and subsequent interest payment dates are the 20th day of every
month thereafter and the principal repayment date (maturity date). However, if such date is not a business day, theinterest payment date shall be the immediately following business day, or if such date falls on the following month,the immediately preceding business day. For borrowings with floating interest rates, the base interest rateapplicable to the calculation period for interest to be paid on each interest payment date is the one month interest
rate of the Japanese Yen TIBOR announced by JBA TIBOR Administration at 11 a.m. (Tokyo time, the same applies1hereinafter) or at a point in time after 11 a.m. which is as close to 11 a.m. as possible, on the date two businessdays immediately before each interest payment date (two business days before the drawdown date for the firstinterest payment date). However, in case the concerned interest rate is not announced for some reason, the interestrate (annual rate) determined reasonably by each lender shall be used, or in case the period corresponding to thefirst interest rate calculation period or the interest rate calculation period does not exist, the base rate
corresponding to the concerned periods as calculated based on methods presribed in the contracts shall be used.
For Japanese Yen TIBOR announced by the JBA TIBOR Administration which is used as the base interest rate, please(Note 4)refer to the JBA TIBOR Administration website (http://www.jbatibor.or.jp/english/rate/).
If a principal repayment date is not a business day, repayment shall be made on the next business day; however, if(Note 5)

If certain conditions, such as advance notification in writing by SAR, are met during the period between the date ofsuch date falls on the next month, repayment shall be made on the immediately preceding business day.
borrowing and the maturity date, SARmay repay the borrowed amounts either in whole or in part prior to thematurity date.
(Note 6)

Certain financial covenants stipulating that certain financial figures should be maintained based on assets andliabilities are expected to be set for the Debt Financing.

2.

Reasons for Debt Financing
To be allocated for a part of the acquisition price and acquisition-related expenses of real estate beneficiaryinterests in trust (Anticipated acquisition price: 3,240 million yen) described in “Notice Concerning
Acquisition and Transfer (5th Asset Replacement) of Real Estate Beneficiary Interests in Trust” announced
today.

3.

Total amount of funds to be procured by the Debt Financing, use of funds and schedule of expenditure(1) Amount of funds to be procured
3,460 million yen in total(2) Specific use of funds to be procured and schedule of expenditure

4.

Specific use of funds

AmountSchedule ofExpenditure

To be allocated for a part of the acquisition price andacquisition-related expenses of real estate beneficiaryinterests in trust (Anticipated acquisition price: 3,240 millionyen) stated in Section 2 above.

3,460
million yen

March 13, 2020

Status of Loans etc. after Debt Financing(Unit: million yen)
Before theAfter theChange
Borrowing
Borrowing
Short-term borrowings－－－
Long-term borrowings
51,58055,0403,460
Total borrowings
51,58055,0403,460
Investment corporation bonds―――
Total borrowings and Investment corporation bonds
51,58055,0403,460
Other interest-bearing liabilities―――
Total interest-bearing liabilities
51,58055,0403,460(Note) A portion of the Debt Fnancing (1,800 million yen) has a repayment due date of less than 1 year.

25.

Other matters required for investors to appropriately understand and evaluate the above information.
In conjunction with the risks pertaining to the repayment of the Debt Financing, there are no changes to “Part
1. Fund Information, I. Overview of the Fund, 3. Investment Risks” stated in the semiannual securities report(Japanese only) on October 30, 2019.

* Star Asia Investment Corporation website address: http://starasia-reit.com/en/<For Reference>
Other press releases etc. disclosed dated today.
Notice Concerning Conclusion of a Merger Agreement between Star Asia Investment Corporation・and Sakura Sogo REIT Investment Corporation・ Notice Concerning Split of Investment Units
Notice Concerning the Forecast of Operating Results and Distributions Subsequent to the Merger
・ of Star Asia Investment Corporation and Sakura Sogo REIT Investment Corporation for the Fiscal
Periods Ending January 31, 2021 and July 31, 2021
Notice Concerning Acquisition and Transfer (Asset Replacement) of Real Estate Beneficiary・Interests in Trust
Notice Concerning Acquisition of Mezzanine Loan Debt – Acquisition of Domestic Assets (Star Asia
・Mezzanine Loan Debt Investment Series 5 (B Beneficiary Interest))
Notice Concerning Revision to Forecast for Operating Results and Distributions for the 8th Fiscal・Period ending January 31, 2020 and for the 9th Fiscal Period ending July 31, 2020
・ Notice Concerning Partial Amendment to the Management Guidelines of the Asset Manager
・ Supplementary Explanatory Material Regarding Press Releases dated today (March 2)This is an English translation of the announcement in Japanese dated March 2, 2020. However, no assurance orwarranties are given for the completeness or accuracy of this English translation.

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