Make The World
More Sustainable[Provisional Translation Only]
This English translation of the original Japanese document is provided solely for information purposes.
Should there be any discrepancies between this translation and the Japanese original, the latter shall prevail.

February 27, 2020
IssuerIchigo Hotel REIT Investment Corporation (“Ichigo Hotel,” 3463)
1-1-1 Uchisaiwaicho, Chiyoda-ku, Tokyo
Representative: Osamu Miyashita, Executive Director
www.ichigo-hotel.co.jp/english
Asset Management Company
Ichigo Investment Advisors Co., Ltd.
Representative: Hiroshi Iwai, President
Inquiries: Hidehito Iwasaka, Head of Ichigo Hotel
Tel: +81-3-3502-4892

New LoansIchigo Hotel decided today to borrow funds via new loans (“Term Loan 12” and “TermLoan 13”).
1. Reason for New Loans
The new loans will be used to repay two existing loans (total amount: JPY 2,450million). Details of the loans to be repaid are in Section 3 below.
The two existing loans to be repaid have floating interest rates. Ichigo Hotel will fix theinterest rate on Term Loan 13 amounting to JPY 2,000 million via a swap within the nextfew days in order to hedge against any future rise in interest rates.
2. Loan Details
Term Loan 12
Loan Date

Lender

Feb 28, 2020

SMBC

1

LoanAmountInterest Rate
(JPY million)
450

Repayment
Date

3M JPY TIBOR Feb 28, 2022
(2.0 years)+0.45% (p.a.)1

Repayment
CollateralizedTerms
Lump-sum
repayment

The interest rate for the payment on the first payment date (from February 28, 2020
through April 30, 2020) will be 0.51909%.

1NoTerm Loan 13
Loan Date

Lender

Feb 28, 2020

SMBC
Mizuho Bank
Shinsei Bank
Resona Bank
Bank of FukuokaNishi-Nippon City Bank2

LoanAmountInterest Rate
(JPY million)

2,000

Repayment
Date

3M JPY TIBOR Feb 27, 2026
(6.0 years)+0.70% (p.a.)2

Repayment
CollateralizedTerms

Lump-sum
repayment

NoThe interest rate for the payment on the first payment date (from February 28, 2020
through April 30, 2020) will be 0.76909%.

Notes:The interest payment date is the final day of every third month following the firstinterest payment date. (The first payment date will be April 30, 2020 and the lastpayment date will be the same as the principal repayment date.) In the event the interest
payment date is not a business day, payment shall be made on the following businessday. If the following business day falls into the following month, payment shall bemade on the previous business day.
The base rate for the loan will be JPY TIBOR as published by the Japanese Bankers
Association (JBA) two business days before each interest payment date. For current JPY
TIBOR rates, please visit the JBA’s website: www.jbatibor.or.jp/english/rate
3. Existing Loans Being Repaid
Term Loan 3
Loan DateLenderAug 17, 2016SMBCMizuho Bank
Shinsei BankResona Bank
Bank of Fukuoka
Nishi-Nippon City Bank

1Loan
AmountInterest Rate
(JPY million)

2,000

Repayment
Date

1M JPY TIBOR Feb 29, 2020
+0.55% (p.a.)(3.5 years)1Repayment
CollateralizedTerms

Lump-sum
repayment

No

Since the repayment date falls into a non-business day, the principal repayment date
will be February 28, 2020.

Term Loan 6
Loan Date

LenderMar 27, 2017

SMBC

Loan
AmountInterest Rate
(JPY million)
450

Repayment
Date

1M JPY TIBOR Feb 28, 2020
+0.50% (p.a.)(2.9 years)

2Repayment
CollateralizedTerms
Lump-sum
repaymentNo4. Earnings Outlook
The impact of the new loans on Ichigo Hotel’s July 2020 fiscal period earnings has
already been reflected in the forecasts presented in Ichigo Hotel’s January 30, 2020
release “Earnings Forecast Revisions for the January 2020 and July 2020 FiscalPeriods.”
5. OtherRisks related to these loans have no material impact on the “Investment Risks”
described in the latest Financial Report submitted October 25, 2019.
Reference: Loan Composition after New Loans
Outstanding Loan Balance(JPY million)
BeforeNew Loans
(A)

After
New Loans(B)Change(B) - (A)Short-term bank loans–––

Long-term bank loans(due within one year)

9,450

7,000

-2,450Long-term bank loans

16,02018,470+2,450Total bank loans

25,47025,470––––25,47025,470–

Bonds
Total bank loans and bonds

3

Distribution of Loan Maturities
Before New Loans■ Fixed Rate

(JPY million)■ Floating Rate

5,250
4,500

4,200

4,500

3,000
2,220
1,800

July January July January July January July January July January July January July
2020
2021
2021
2022
2022
2023
2023
2024
2024
2025
2025
20262026

After New Loans(JPY million)■ Fixed Rate ■ Floating Rate ■ New Loans
5,250
4,500

4,500

3,000
2,220
1,800

1,750

2,000

450
July January July January July January July January July January July January July
2020
2021
2021
2022
2022
2023
2023
2024
2024
2025
2025
2026
2026

4