April 10, 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 (Refinancing)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

Termlong-term(Note 1)

LenderA syndicate oflenders
with
Sumitomo Mitsui
Banking
Corporation andMizuho Bank, Ltd.
asarrangers(Note 2)

Borrowingamount7,300
million yen

Interestrate(Note 3)(Note 4)

Baseinterest
rate+0.60%

Date ofborrowing

April
2020

20,

Borrowing
methodBorrowingbased on theindividual termloan agreement
planned to bedated April 16,
2020 based onthebasic
agreement
dated April 15,
2016 between
Sumitomo
Mitsui Banking
Corporation as
an agent.

Maturitydate(Note 5)

Repayment
methodSecurity

April2025

Lump sum
repayment
on maturity
date(Note6)

UnsecuredandUnguaranteed

21,(Note 1)Long-term refers to borrowings due after one year. The same applies hereinafter.

(Note 2)The syndicate of lenders consists of Sumitomo Mitsui Banking Corporation, Mizuho Bank, Ltd., Sumitomo Mitsui
Trust Bank, Limited, Shinsei Bank, Limited, Resona Bank, Limited. and Aozora Bank, Ltd.,(Note 3)Financing fees and other charges to the lenders are not included.

(Note 4)

The first interest payment date is May 20, 2020 and following interest payment dates are 20th of every month
thereafter and the principal repayment date (maturity date). However, if such date is not a business day, theimmediately following business day, or if such date falls on the next month, the immediately preceding business
day is respectively set as the interest payment date. For borrowings with floating interest rates, the baseinterest rate applicable 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,1

the same applies hereinafter) or at the point of time after 11 a.m. and as close to 11 a.m. as possible on thedate two business days immediately before each interest payment date (two business days before thedrawdown date for the first interest payment date). However, in case the concerned interest rate is notannounced for some reasons, the interest rate (annual rate) determined reasonably by the agent (Sumitomo
Mitsui Banking Corporation) shall be used, or in case the period corresponding to the first interest rate
calculation period or the interest rate calculation period does not exist, base rate corresponding to theconcerned period and calculated based on methods determined 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 check with
the JBA TIBOR Administration website (http://www.jbatibor.or.jp/english/rate/). SAR will consider fixing interest
rate payments by an arrangement such as interest rate swaps for long-term borrowings out of the Debt
Financing.
(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 met during the period between the dateof borrowing and the maturity date, SAR is eligible to repay the borrowed amounts either in whole or in part prior
to the maturity date.

(Note 7)

Financial covenants, such as 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 FinancingThe Debt Financing shall be allocated to the repayment of long-term borrowings totaling 7,300 million yen
which will mature on April 20, 2020 announced in the press release titled “Notice Concerning Execution of
Debt Financing and Establishment of Interest Rate Swaps” dated April 20, 2016. (The Debt Financing and theconcerned repayment of existing borrowings are collectively referred to as the “Refinancing.”)
SAR seeks to improve the soundness of its financial base by the Refinancing and considering fixing ofinterest-rate payments for the Debt Financing through interest rate swap agreements, etc.

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
7,300million yen in total(2) Specific use of funds to be procured and schedule of expenditure

4.

Specific use of funds

Amountmillion yen

Schedule ofExpenditure

To be allocated to repaying the Existing Loan. stated inSection 2 above.

7,300

April 20, 2020

Status of Loans etc. after Debt Financing

Short-term borrowings
Long-term borrowings
Total borrowings
Investment corporation bonds
Total borrowings and Investment corporation bonds
Other interest-bearing liabilities
Total interest-bearing liabilities

2

Before theBorrowing―
55,04055,040―55,040―55,040(Unit: million yen)
After theChange
Borrowing――
55,04055,04055,04055,040――55,04055,040――55,04055,0405.

Future outlook Since the impact of the Refinancing for operating results for the fiscal period ending July
2020 (February 1, 2020 to July 31, 2020) and January 2021 (August 1, 2020 to January 31, 2021)
announced in “Financial Report for Fiscal Period Ended January 31, 2020 (REIT)” dated March 13, 2020 isminimal, there are no changes to the forecast.

6.

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/

This is an English translation of the announcement in Japanese dated April 10, 2020.However, no assurance orwarranties are given for the completeness or accuracy of this English translation.

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