Notice Concerning Borrowing of Funds

Transcription

1 To all concerned parties: [Translation for reference purposes only] September 1, 2016 Real Estate Investment Trust Securities Issuer: Ooedo Onsen Reit Investment Corporation Representative: Fuminori Imanishi, Executive Director (Securities Code: 3472) Asset Management Company: Ooedo Onsen Asset Management Co., Ltd. Representative: Fuminori Imanishi, Chief Executive Officer Inquiries: Tomohiro Honda, Chief Financial Officer (TEL: ) Notice Concerning Borrowing of Funds Ooedo Onsen Reit Investment Corporation (the Investment Corporation ) announces that the following borrowing of funds (the Borrowing ) has been completed today. 1. Details of the Borrowing (1) Short-term loan (Note 1) (Tranche A) (ii) Loan amount : 1,400 million yen (Note 2) (iv) Drawdown : September 1, 2016 : Base interest rate (JBA 1-month JPY TIBOR) (Note 3) (Note 7) plus 0.35% (Note 4) (v) Borrowing method : Borrowing based on individual loan agreement d August 30, 2016, and subsequent interest payment s shall be the last day of every month (Note 5) and the principal. : May 31, 2017 (Note 5) 1

2 : Lump-sum repayment at maturity. If the borrower receives a refund of consumption tax, the borrower shall make an early repayment of the refunded amount to the lender on the interest payment immediately after the day on which the borrower receives the refund ( Refund Receipt Date ) (or, if the interest payment that comes immediately after the Refund Receipt Date is within 10 business days of the Refund Receipt Date, on the next interest payment after such interest payment ). (2) Long-term loan (Note 1) (Tranche B) ; ORIX Bank Corporation; Sumitomo Mitsui Trust Bank, Limited; The Mie Bank, Ltd.; The Iyo Bank, Ltd.; The Bank of Fukuoka; The Nomura Trust and Banking Co., Ltd.; and The Shinwa Bank, Ltd. (ii) Loan amount : 7,053 million yen : Base interest rate (JBA 3-month JPY TIBOR) (Note 6) (Note 7) plus 0.65% (Note 4) (iv) Drawdown : September 1, 2016 (v) Borrowing method : Borrowing based on individual loan agreement d August 30, 2016, with the lenders above 2016, and subsequent interest payment s shall be the last day principal. : May 31, 2019 (Note 5) October every year (Note 5) in installments of 34,250,000 yen to be prorated in proportion to the amount of unpaid principal of each individual lender s individual loan, and the loan outstanding shall be repaid on the principal. (3) Long-term loan (Tranche C) (i) Lender : Mitsui Banking Corporation; ORIX Bank Corporation; Sumitomo Mitsui Trust Bank, Limited; and The Mie Bank, Ltd. (ii) Loan amount : 3,850 million yen (iv) Drawdown : September 1, 2016 : Base interest rate (JBA 3-month JPY TIBOR) (Note 6) (Note 7) plus 0.80% (Note 4) 2

3 (v) Borrowing method : Borrowing based on individual loan agreement d August 30, 2016, with the lenders above 2016, and subsequent interest payment s shall be the last day principal. : May 29, 2020 (Note 5) October every year (Note 5) in installments of 18,750,000 yen to be prorated in proportion to the amount of unpaid principal of each individual lender s individual loan, and the loan outstanding shall be repaid on the principal. (4) Long-term loan (Tranche D) (ii) Loan amount : 500 million yen : Base interest rate (JBA 3-month JPY TIBOR) (Note 6) (Note 7) plus 1.25% (Note 4) (iv) Drawdown : September 1, 2016 (v) Borrowing method : Borrowing based on individual loan agreement d August 30, 2016, and subsequent interest payment s shall be the last day principal. : May 31, 2023 (Note 5) October every year (Note 5) in installments of 2,750,000 yen, and the loan outstanding shall be repaid on the principal repayment. (5) Short-term loan (Tranche E) (ii) Loan amount : 777 million yen : Base interest rate (JBA 1-month JPY TIBOR) (Note 3) (Note 7) plus 0.35% (Note 4) 3

4 (iv) Drawdown : September 1, 2016 (v) Borrowing method : Borrowing based on individual loan agreement d August 30, 2016, and subsequent interest payment s shall be the last day of every month (Note 5) and the principal. : May 31, 2017 (Note 5) : Lump-sum repayment at maturity. (Note 1) Short-term loan refers to a loan where the principal is due within one year, and long-term loan refers to a loan where the principal is due within a period longer than one year. The same applies hereinafter. (Note 2) Borrowing expenses, etc. payable to the lenders are not included. The same applies hereinafter. (Note 3) The base interest rate applicable to the calculation period for the interest payable on each interest payment shall be the JBA one-month Japanese yen TIBOR (Tokyo Interbank Offered Rate) (Note 7) two business days prior to the interest payment (in case of the first interest calculation period, two business days prior to the borrowing ). However, in cases where there is no rate corresponding to the interest calculation period, the base interest rate for such interest calculation period shall be calculated based on the method provided for in the loan agreements. The base interest rate corresponding to the first interest calculation period is %. (Note 4) The first interest calculation period shall be from September 1, 2016, to the last day of October (Note 5) If this falls on a day that is not a business day, the shall be the immediately following business day or, if that immediately following business day falls in the next calendar month, the immediately preceding business day. (Note 6) The base interest rate applicable to the calculation period for the interest payable on each interest payment shall be the JBA three-month Japanese yen TIBOR (Note 7) two business days prior to the interest payment (in case of the first interest calculation period, two business days prior to the borrowing ). However, in cases where there is no rate corresponding to the interest calculation period, the base interest rate for such interest calculation period shall be calculated based on the method provided for in the loan agreements. The base interest rate corresponding to the first interest calculation period is %. (Note 7) Please refer to the Japanese Bankers Association (JBA) TIBOR Administration s website ( regarding Japanese yen TIBOR. 2. Reason for the Borrowing The proceeds of loans will be allocated to part of the funds for acquisition of real estate (nine properties in total) described in Part II. Fund Information, I. Status of Fund, 2. Investment Policy, (2) Investments Targets, (iv) Overview of Assets to be Acquired of the securities registration statement submitted on July 29, 2016 (the Acquired Assets ), as well as funds for payment of expenses incidental to such acquisition. Please refer to Notice Concerning Completion of Acquiring Real Estate in Japan d today for an outline of the Acquired Assets. 4

5 3. Amount, Use and Scheduled Disbursement Date of Funds to be Procured (1) Amount of funds to be procured 13,580 million yen (2) Specific use of funds to be procured Allocated to part of the funds for acquisition of the Acquired Assets and funds for payment of expenses incidental to such acquisition. (3) Scheduled disbursement September 1, Status of Loans, etc. after the Borrowing Before drawdown After drawdown (Unit: million yen) Increase or decrease Short-term loans - 2,177 2,177 Long-term loans - 11,403 11,403 Total loans - 13,580 13,580 Investment corporation bonds Total amount of loans and investment corporation bonds - 13,580 13,580 Other interest-bearing debt Total interest-bearing debt - 13,580 13, Other Matters Necessary for Investors Appropriate Understanding and Judgment of the Subject Information Concerning the risks associated with repayment, etc. of the Borrowing, there is no change from the content of Part II. Fund Information, I. Status of Fund, 3. Investment Risks of the securities registration statement submitted on July 29, * The Investment Corporation s website: 5