August 26, 2022
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.

Details of the Debt Financing (Note 1)
Method of Borrowings: Borrowings under individual term loan agreements scheduled to be signed on
August 29, 2022 with the lenders described below.

Term(Note 2)

Lenders

Borrowingamounts

Interest Rates

Expected(Note 4)

Date of(Note 5)

Borrowing

Principal
Repayment

Repayment

Date

MethodSecurity(Note 6)

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

interest

3,100
millionFloatingyen(Note 3)

borrowings

A syndicate of＋0.45 %Banking
Corporation andMizuho Bank, Ltd.
as arrangers

Lump sum
repayment on
principalrepayment
date(Note 7)

August 31,2022

Baselenders with
Sumitomo Mitsui

2026(JPY 3MTIBOR)

as arrangers

Long-term

April 30,

rateinterest

2,500
millionyen

Floatingrate(JPY 3M

UnsecuredandUnguaranteed

August 31,2027

TIBOR)＋0.60 %

(Note 3)(Note 1) This information is based on the notice on results of consideration regarding the Debt Financing issued by thelenders. 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, Shinsei Bank and Resona Bank, Limited.
(Note 4) Financing fees and other charges payable to the lenders are not included.
(Note 5) The first interest payment date is November 30, 2022, and thereafter, interest payment dates are the last day ofevery 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 an interest rate swap agreement, etc.
(Note 6) 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 7) 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 8) 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 repayment of the JPY 5,600 million
long-term borrowing to mature on August 31, 2022. For details on the JPY 5,600 million long-termborrowing, please refer to the press release disclosed by Sakura Sogo REIT Investment Corporation dated
August 28, 2017 entitled “Notice Concerning Debt Financing (Refinancing)”. (The Debt Financing and therelevant repayments of existing borrowings are collectively referred to as the “Refinancing”).
(Note)

Due to the absorption-type merger executed on August 1, 2020, where SAR was the juridical person
surviving the absorption-type merger, and Sakura Sogo REIT Investment Corporation was the investment
corporation extinguished in the absorption-type merger, SAR has assumed the liabilities under the relevantborrowing of Sakura Sogo REIT Investment Corporation.

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 5,600 million yen

II.

Specific use of funds to be procured and schedule of expenditures
Specific use of funds
Amountmillion yen
To be allocated to repayment of the existing loans stated in5,600
Section 2 above.

2Scheduled date ofExpenditure
August 31, 2022

4.

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

After theDebt Financing

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 January 31, 2023 (August 1, 2022 to January 31,2023) and 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 for Operating Results for the14th Fiscal Period Ending January 31, 2023 and Forecasts for Operating Results and Distribution for the15th Fiscal Period Ending July 31, 2023” dated August 1, 2022. With respect to the summary financial report(kessan tanshin) for SAR’s 13th Fiscal Period (February 1, 2022 to July 31, 2022), it is scheduled to bedisclosed on September 13, 2022

6.

Other matters required for investors to appropriately understand and evaluate the above informationIn 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 1, 2022.

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

This is an English translation of the announcement in Japanese dated August 26, 2022.
However, no assurance or warranties are given for the completeness or accuracy of this English translation.

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