[For Information Purpose Only. The Japanese language press release should be referred to as the original.] July 18, 2024 To All Concerned Parties Name of REIT Issuer: Invincible Investment Corporation Naoki Fukuda, Executive Director (Securities code: 8963) Asset manager: Consonant Investment Management Co., Ltd. Naoki Fukuda, President & CEO Contact: Jun Komo General Manager of Planning Department (Tel. +81-3-5411-2731)
Notice concerning Debt Financing
Invincible Investment Corporation (“INV”) has determined to obtain new debt financing. Details are as follows. 1.  Reason for Borrowing INV has decided to execute new borrowing (the "Borrowing") in order to fund a portion of the anticipated acquisition price and related expenses of 12 domestic hotel properties (in the form of domestic trust beneficiary interests) (the “Anticipated Acquisitions”) (Note) scheduled to be acquired on July 31, 2024. The Borrowing is provided by a syndicate of lenders arranged by Mizuho Bank, Ltd. as an arranger. INV continues to be supported by the existing lenders joined by The San-In Godo Bank, Ltd. and Suruga Bank Ltd., which further strengthens its bank formation. (Note) For details on the Anticipated Acquisitions, please refer to the press release “Notice concerning Acquisition and Lease of Domestic Trust Beneficiary Interests" dated July 18, 2024. This English language notice is a translation of the Japanese-language notice released on July 18, 2024 and was prepared solely for the converience of, and reference by, non-Japanese investors.   It is not intended as an inducement or solicitation for investment.   We caution readers to undertake investment decisions based on their own investigation and responsibilty.  This translation of the orginal Japanese-language notice is provided for informational purposes only, and no warrantes or assurances are given regarding the accuracy or completeness of this English translation.   Readers are advised to read the original Japanese-anguage notice.   In the event of any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects. 11
1-Year Tranche (1) Lenders :   Mizuho Bank, Ltd. This English language notice is a translation of the Japanese-language notice released on July 18, 2024 and was prepared solely for the convenience of, and reference by, non-Japanese investors.   It is not intended as an inducement or solicitation for investment.   We caution readers to undertake investment decisions based on their own investigation and responsibiity.  This translation of the original Japanese-language notice is provided for informational purposes only, and no warrantes or assurances are given regarding the accuracy or completeness of this English translation.   Readers are advised to read the original Japanese-anguage notice.   In the event of any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.
event of any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.
Short-term consumption tax loan will be prepaid before maturity date once INV receives the refund of consumption taxes (Note 7) and regional consumption taxes on the Anticipated Acquisitions through New Syndicate Loan (015). Borrowing under the New Syndicate Loan (015) is subject to certain conditions including satisfaction of separately agreed (Note 8) conditions. This English language notice is a translation of the Japanese-language notice released on July 18, 2024 and was prepared solely for the convenience of, and reference by, non-Japanese investors.   It is not intended as an inducement or solicitation for investment.   We caution readers to undertake investment deosions based on their own inforsation and responsibilty.  This translation of the orginal Japanese-larguage notice is provided for informational purposes only, and no warranses of this English tr event of any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.
3. Loan proceeds, use of proceeds and scheduled timing of disbursement (1) Loan proceeds JPY 56,725 million (2)  Use of proceeds To be appropriated for a portion of the total acquisition price (JPY 104,420 million) (Note) and related expenses of the Anticipated Acquisitions. (Note) For details on the Anticipated Acquisitions, please refer to the press release *Notice concerning Acquisition and Lease of Domestic Trust Beneficiary Interests" dated July 18, 2024. (3) Scheduled timing of disbursement July 31, 2024
4.  Future outlook
For revision of the forecasted financial results and distribution for the fiscal period ended June 2024 (from January 1, 2024 to June 30, 2024) as well as the fiscal period ending December 2024 (from July 1, 2024 to December 31, 2024) and the forecasted financial results and distribution for the fiscal period ending June 2025 (from January 1, 2025 to June 30, 2025), please refer to the press release “Notice concerning Revision of Forecast of Financial Results and Distribution for the 42nd Fiscal Period Ended June 2024 and the 43rd Fiscal Period Ending December 2024 as well as Forecast of Financial Results and Distribution for the 44th Fiscal Period Ending June 2025” dated July 18, 2024. Other matters necessary for investors’ appropriate understanding/judgment of concerned information 5. With respect to the risks associated with the Borrowing, please refer to "Investment Risks" stated in the securities report for the fiscal period ended December 2023 (from July 1, 2023 to December 31, 2023) (available in Japanese only) filed on March 27, 2024 and “Part II, Reference Information, II Supplemental Information to the Reference Documents, 5. Investment Risks" of the securities registration statement (available in Japanese only) filed on July 18, 2024. Website of INV: https://www.invincible-inv.co.jp/en/ This English language notice is a translation of the Japanese-language notice released on July 18, 2024 and was prepared solely for the converience of, and reference by, non-Japanese investors.   It is not intended as an inducement or solicitation for investment.   We caution readers to undertake investment deosions based on their own investigation and responsibilty.  This translation of the orginal Japanese-language notice is provided for informational purposes only, and no warrantes or assurances are given regarding the accuracy or completeness of this English translation.   Readers are advised to read the original Japanese-anguage notice.   In the event of any discrepancy between this translation and the Japanese original, the latter shall prevail in all respects.
[For reference only] ■ Change in balance of interest-bearing liabilities (anticipated)
on total appraisal value of the 134 properties owned by INV as of July 18, 2024 (including preferred equity interest in the TMK which holds Sheraton Grande Tokyo Bay Hotel as an underlying asset and the two Cayman hotels “Westin Grand Cayman Seven Mile Beach Resort & Spa" and "Sunshine Suites Resort") (the "properties owned by INV"). For "After the Borrowing", "Total appraisal value of properties owned by INV (and Anticipated Acquisitions)" is based on total appraisal value of the properties owned by INV and the Anticipated Acquisitions. The 133 properties (excluding the preferred equity interest in the TMK) of the properties owned by INV are based on the appraisal value stated in the appraisal reports on the valuation date of December 31, 2023. For the preferred equity interest in the TMK which holds Sheraton Grande Tokyo Bay Hotel as an underlying asset, the acquisition price (INV's investment amount) of such preferred equity interest, JPY 17,845 million, is deemed as the appraisal value and included. The appraisal value of overseas real estate assets was translated into JPY based on the exchange rate of 1 USD= 110.45 JPY which is the foreign exchange forward rate under the foreign exchange forward agreement entered into on July 26, 2018 and executed on September 26, 2018. The Anticipated Acquisitions are based on the appraisal value stated in the appraisal reports on the valuation date of June 1, 2024. (Note 2)   "LTV (based on appraisal value)" in the above table is calculated according to the following formula: LTV (based on appraisal value)  =  Total interest-bearing liabilities (excluding short-term consumption tax loan) ÷ Total appraisal value of properties owned by INV (and Anticipated Acquisition) × 100 "Total interest-bearing liabilities" does not include the interest-bearing liabilities of the TMK which holds Sheraton Grande Tokyo Bay Hotel as an underlying asset. (Note 3)   "Before the Borrowing" in the above table is the date when INV has repaid the Term Loan (W) maturing on July 20, 2024. (Note 4)  "After the Borrowing" in the above table is the date when INV has executed the Borrowing and had acquired the Anticipated Acquisitions. (Note 5)   The amounts are rounded down to the nearest million yen. The percentages are reunded to the nearest one decimal place.