Translation of Japanese Original
To All Concerned Parties
August 25, 2017
REIT Issuer: Kenedix Office Investment Corporation Naokatsu Uchida, Executive Director
(Securities Code: 8972)
Asset Management Company: Kenedix Real Estate Fund Management, Inc. Masahiko Tajima, President & CEO
Inquiries: Jiro Takeda
Head of Planning Division Office REIT Department TEL: +81-3-5623-8979
Notice Concerning Debt Financing (Series 143) and the Execution of an Interest Rate Swa p AgreementKenedix Office Investment Corporation ("the Investment Corporation") today announced its decision to undertake debt financing (total of 2,000 million yen) and the execution of an interest rate swap agreement.
Please see below for the details.
-
Outline of Debt Financing
Series
Lender
Amount
Interest Rate (Note 1) (Note 2)
Contract Date
Drawdown Date
Principal Repayment Date (Note 1)
Collateral・
Repayment Method
143-A
Mizuho Bank, Ltd.
1,000
million yen
Base rate (JPY TIBOR
for 1 month)
+ 0.25000%
August 25,
2017
August 31,
2017
August 31,
2018
Unsecured, unguaranteed
・ Repayment of principal
in full on maturity date
143-B
Sumitomo Mitsui Banking Corporation
1,000
million yen
Base rate (JPY TIBOR
for 1 month)
+ 0.45000%
August 31,
2023
Note 1: The first interest payment is due at the end of September 2017, and on the last day of every month thereafter with the principal repayment day. If each interest payment day or the principal repayment day is a non-business day, then the interest payment or the principal repayment will be due on the next business day and if that next business day is in the next month, then previous business day will be applied.
Note 2: The base rate that is applied during interest period for the interest due on each interest payment date shall be calculated based on Japanese Yen TIBOR for 1 month, which the JBA TIBOR Administration ("the JBATA") releases two business days before each interest payment date. The Japanese Yen TIBOR of the JBATA is available on the JBATA website (http://www.jbatibor.or.jp/english/rate/).
-
Purpose of Debt Financing
Series 143 is to apply the fund towards the repayment of Series 131-A (2,000 million yen) with the principal repayment date of August 31, 2017.
-
Interest Rate Swap Agreement
The Investment Corporation decided to undertake the execution of an interest rate swap agreement as follows. The details will be announced upon determination.
Purpose
For a hedge against possible increases in future interest rate for Series 143-B with floating interest rate.
Details of the Interest Rate Swap Agreement
Series 143-B
Counterparty
To be determined (Note)
Notional Amount
1,000 million yen
Interest Rate
Fixed interest rate for payment
To be determined (Note)
Floating interest rate for receipt
Base rate (JPY TIBOR for 1 month)
Commencement Date
August 31, 2017
Termination Date
August 31, 2023
Payment Date
The first payment is due at the end of September 2017, and on the last day of every month thereafter, with August 31, 2023. (If each payment day is a non-business day, then the payment will be due on the next business day and if that next business day is in the next month, then previous business day will be applied.)
Note: The undecided matters will be announced upon determination.
-
Status of Debt Financing and Corporate Bonds after the Borrowings (as of August 31, 2017)
(Millions of yen)
Classification
Balance before the Borrowings
Balance after the Borrowings
Difference
Short-Term Borrowings (Note 1)
5,000
6,000
+1,000
Long-Term Borrowings (Note 2)
166,800
165,800
-1,000
Total Borrowings
171,800
171,800
0
Corporate Bonds
9,300
9,300
0
Total Borrowings and Corporate Bonds
181,100
181,100
0
Note 1: Short-term borrowings refer to debt financing with a period less than or equal to one year from the drawdown date to the principal repayment date. However, the borrowings for which the period until the principal repayment date have surpassed one year because the principal repayment date one year from the drawdown date is not a business day, and for which the principal repayment date has been moved to a different business day, are included in short-term borrowings.
Note 2: Long-term borrowings refer to debt financing with a period more than one year from the drawdown date to the principal repayment date.
- Other
For risks concerning the repayment of the aforementioned borrowings, there are no significant changes to the "Investment Risks" as described in the Securities Report (submitted on July 28, 2017).
The Investment Corporation's website: http://www.kdo-reit.com/en/
This notice is the English translation of the Japanese announcement on our website released on August 25, 2017. However, no assurance or warranties are given for the completeness or accuracy of this English translation.
Kenedix Office Investment Corporation published this content on 25 August 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 25 August 2017 07:17:09 UTC.
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