August 27, 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) and Establishment of Interest Rate Swaps
Star Asia Investment Corporation (“SAR”) announces today that it has decided to execute debt financings (the“Debt Financing”) and establish interest rate swaps (the “Interest Rate Swaps”), as described below.
1.

The Debt Financing(1) Details of the Debt Financing
Princip

TermLenders(Note 1)

Borrow

InterestDateing

Ratesofamoun(Note4)

Borrots(Note5)

wingalRepay
Borrowing Method

ment
Date

Repayment
MethodSecurity(Note6)

A syndicate ofBaselenders with
Sumitomo Mitsui

4,350

Banking Corporation

millionand Mizuho Bank,

yen

Ltd. as arrangers

Long-term(Note 2)borrowings

A syndicate of

3,800

Banking Corporation

millionand Mizuho Bank,yen(Note 3)the individual term

3-monthTIBOR)＋

Base

Sumitomo Mitsui

Borrowings based onrate (JPY0.60 %

lenders withLtd. as arrangers

interest

loan agreement dated

AugustAugust 27, 2021,

31,

based on the basic

2021

agreement dated July29, 2020 withinterest

Sumitomo Mitsuirate (JPYBanking Corporation

3-month

as agent.

TIBOR)＋

August31,
2026

August31,

Lump sum
repaymentonprincipal
repaymentdate(Note 7)

UnsecuredandUnguaranteed

2028

0.80 %(Note 1) 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”.
(Note 2) The syndicate of lenders consists of Sumitomo Mitsui Banking Corporation, Mizuho Bank, Shinsei Bank and MinatoBank.
(Note 3) The syndicate of lenders consists of Sumitomo Mitsui Banking Corporation, Mizuho Bank, Shinsei Bank, Aozora

1Bank, San-ju San Bank.
(Note 4) Financing fees and other charges payable to the lenders are not included.
(Note 5) The first interest payment date is November 30, 2021, 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 6,000 million
long-term borrowing and the JPY 2,150 million short-term borrowing each to mature on August 31, 2021.
With respect to the JPY 6,000 million long-term borrowing, please refer to the press release disclosed by
Sakura Sogo REIT Investment Corporation dated September 9, 2016 entitled “Notice of Execution of Debt
Financing”, and with respect to the JPY 2,150 million short-term borrowing, please refer to the press
release dated August 25, 2020 entitled “Notice Concerning Debt Financing (Refinancing)”. (The Debt
Financing and the relevant repayments of existing borrowings are collectively referred to as the“Refinancings”).
(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 relevant borrowing 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 8,150 million yenii)

Specific use of funds to be procured and schedule of expenditures
Specific use of funds
Amountmillion yenTo be allocated to repayment of the Existing Loans stated
8,150
in Section 2 above.

2

Schedule ofExpenditures
August 31, 2021

(4)Status of Borrowings etc. after the Refinancing

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 theRefinancing
2,150
87,29089,440(Unit: million yen)
After theChange
Refinancing
0-2,150
89,4402,150
89,440－－89,440－
89,440－89,440－89,440－－－－Establishment of the Interest Rate Swaps(1) Reason for establishment of the interest rate swaps
The interest rate swaps will be established in order to fix interest rate payments and hedge
interest rate fluctuation risk pertaining to the borrowings under an individual term loan
agreement signed on August 27, 2021, as described above “The Debt Financing”.
(2) Details of the interest rate swap agreements
Counterparty
Sumitomo Mitsui Trust Bank, Limited
Notional principal
4,350 million yen
Interest rate (Note)
Fixed interest rate payable: 0.09545%
Floating interest rate receivable: JBA 3-month yen TIBOR
Commencement date August 31, 2021
Termination dateAugust 31, 2026
Interest payment
The first interest payment date will be November 30, 2021, anddates
subsequent interest payment dates will be every 3 months at the end ofthe month.
(Note) Given the establishment of the Interest Rate Swaps, the interest rate for the relevant borrowing
will be effectively fixed at 0.69545 %.
Counterparty
Notional principal
Interest rate (Note)

Sumitomo Mitsui Trust Bank, Limited
3,800 million yen
Fixed interest rate payable: 0.11060%
Floating interest rate receivable: JBA 3-month yen TIBOR
Commencement date August 31, 2021
Termination dateAugust 31, 2028
Interest payment
The first interest payment date will be November 30, 2021, anddates
subsequent interest payment dates will be every 3 months at the end ofthe month.
(Note) Given the establishment of the Interest Rate Swaps, the interest rate for the relevant borrowing
will be effectively fixed at 0.91060 %.
3.

Future outlook
The impact of the Refinancing and establishment of the Interest Rate Swaps on the operating results isinsignificant, and there are no changes to the forecast of operating results for the fiscal period ending
January 31, 2022 (August 1, 2021 to January 31, 2022) and the fiscal period ending July 31, 2022 (February1, 2022 to July 31, 2022) which was announced by SAR in the press release entitled “Notice Concerning
Revision to Forecasts for Operating Results for the 12th Fiscal Period ending January 31, 2022 and Forecasts
for Operating Results and Distribution for the 13th Fiscal Period ending July 31, 2022” dated August 2,3

2021. With respect to the summary financial report (kessan tanshin) for SAR’s 11th Fiscal Period (February1, 2021 to July 31, 2021), it is scheduled to be disclosed on September 14, 2021
4.

Other matters required for investors to appropriately understand and evaluate the above information
In conjunction with the risks related to the Refinancings and the establishment of the Interest Rate
Swaps, there are no changes to the section “Part 2. Reference Information, 2. Supplementary Information
on Reference Documents, 3. Investment Risks” found in 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 August 27, 2021.
However, no assurance or warranties are given for the completeness or accuracy of this English translation.

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