November 19, 2021
Translation Purpose Only
For Immediate Release
REIT Issuer
Starts Proceed Investment Corporation
3-1-8 Nihonbashi, Chuo-ku, Tokyo
Kazuya Hiraide, Executive Director
(Security Code: 8979)
Asset Management Company
Starts Asset Management Co., Ltd.
Kazuya Hiraide, Representative Director
Inquiries: Hideki Hamaguchi, General Manager of
Financial Control and Administration Division
TEL. +81-3-6202-0856
Notice Concerning Borrowing of Funds and Conclusion of Interest Rate Swap Agreement
Starts Proceed Investment Corporation ("SPI") announces that it decided at its Board of Directors' meeting held today to conduct borrowing of funds and to conclude an interest rate swap agreement. The details are as follows.
1. Reason and Purpose of Borrowings
Borrowings will be conducted to allocate funds as part of repayment of borrowings totaling 4,320 million yen maturing on November 24, 2021. The difference between the borrowing amount and the borrowings to be repaid (2,820 million yen), which is 1,500 million yen, will be repaid using the proceeds from the SPI Third Series Unsecured Investment Corporation Bond (Green Bonds) (Note) issued on November 18, 2021.
(Note) For details of the investment corporation bonds, please refer to "Notice Concerning Issuance of Investment Corporation Bonds (Green Bonds)" dated November 12, 2021.
2. Details of Borrowings
Term Loan 2T | |
Resona Bank, Limited | |
Aozora Bank, Ltd. | |
Mizuho Bank, Ltd. | |
Lender | The Chiba Bank, Ltd. |
The Musashino Bank, Ltd. | |
The 77 Bank, Ltd. | |
The Kagawa Bank, Ltd. | |
Sumitomo Mitsui Trust Bank, Limited | |
Loan Amount | 2,820 million yen |
Scheduled | |
Drawdown | November 24, 2021 |
Date | |
Principal | |
Repayment | May 24, 2027 |
Date | |
Interest Rate | Base interest rate (JBA 3-month Japanese Yen TIBOR) +0.670% |
(Note 1) | |
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The first interest payment date shall be the last day of November 2021, and for subsequent | |
Interest | payments, the last day of February, May, August and November thereafter (however, in the |
Payment Date | event that one of these days is not a business day, the business day immediately preceding |
it) and the principal repayment date. | |
Loan agreements will be individually concluded for Term Loan 2T as of November 19, 2021, | |
Borrowing | based on the basic loan agreement (hereinafter referred to as the "Basic Loan Agreement," |
Method | including subsequent revisions and addition of lenders (Note 2)) executed on November 19, |
2009. | |
Principle | |
Repayment | Lump-sum repayment on repayment date |
Method | |
Collateral | Unsecured |
Guarantee | Unguaranteed |
(Note 1) ・The base interest rate applicable to the calculation of interest payable on the interest payment day is the JBA 3-month Japanese Yen TIBOR published two business days prior to the interest payment date immediately preceding each interest payment date (drawdown date for the first interest payment date).
・After this, SPI will not announce the determination of interest rates for the concerned borrowings. For fluctuations in the Japanese Yen TIBOR of JBA, the base interest rate, please check the website of JBA TIBOR Administration (http://www.jbatibor.or.jp/english/).
(Note 2) For the details of the Basic Loan Agreement, please refer to the press release "Notice Concerning Borrowing of Funds and Repayment of Borrowings" dated November 18, 2009.
3. Borrowings to Be Repaid
Term Loan 2H | |
Resona Bank, Limited | |
Aozora Bank, Ltd. | |
Mizuho Bank, Ltd. | |
Lender | The Musashino Bank, Ltd. |
The Chiba Bank, Ltd. | |
The Kagawa Bank, Ltd. | |
Sumitomo Mitsui Trust Bank, Limited | |
Repayment | 4.320 million yen |
Amount | |
Drawdown | December 9, 2016 |
Date | |
Principal | |
Repayment | November 24, 2021 |
Date | |
Interest Rate | Base interest rate (JBA 1-month Japanese Yen TIBOR)+ 0.320% |
4. Interest Rate Swap Agreement
(1) Reason to conclude the interest rate swap agreement
To hedge against risk of interest rate hike concerning Term Loan 2T, the borrowings to be conducted under the condition of floating interest rate as mentioned above.
(2) Details of the interest rate swap agreement
Interest Rate Swap Agreement concerning Term Loan 2T
Lender | Aozora Bank, Ltd. |
Notional Principle Amount | 2,820 million yen |
Interest Rate, Etc. | Fixed interest rate payable: 0.850% |
Floating interest rate receivable: Base interest rate (JBA 3-month | |
Japanese Yen TIBOR) + 0.670% | |
Commencement Date | November 24, 2021 |
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Termination Date | May 24, 2027 |
Payment Date | The first interest payment date shall be the last day of November 2021, |
and for subsequent payments, the last day of February, May, August and | |
November thereafter (however, in the event that one of these days is not | |
a business day, the business day immediately preceding it) and the | |
principal repayment date. |
(Note) In accordance with conclusion of the interest rate swap agreement, the actual interest rate on Term Loan 2T is, in effect, fixed at 0.850%.
5. Status of Interest-Bearing Liabilities After Borrowing (as of November 24, 2021)
(Unit: million yen) | |||||
Before Borrowing | After Borrowing | Change | |||
(Note 1) | (Note 1) | (Note 1) | |||
Short-term loans payable | - | - | - | ||
Current portion of long-term loans | 10,093 | 5,773 | (4,320) | ||
payable | |||||
Long-term loans payable | 33,552 | 36,372 | 2,820 | ||
Total loans | 43,646 | 42,146 | (1,500) | ||
Investment corporation bonds | 3,500 | 3,500 | - | ||
Total interest-bearing liabilities | 47,146 | 45,646 | 1,500 | ||
LTV ratio (%) (Note 2) | 53.1 | 52.3 | (0.8) |
(Note 1) All amounts indicated in the above table and below are rounded down to the nearest million yen.
(Note 2) LTV ratio is calculated as follows, rounded to the first decimal place.
LTV ratio = Interest-bearing liabilities ÷ (Interest-bearing liabilities + Unitholders' capital) × 100 Unitholders' capital is 41,684 million yen as of the date of this document.
6. Other
The risks associated with the repayment of borrowings, etc. do not change significantly from those detailed in "Investment Risks" in the periodic securities report (yuka shoken hokokusho) for the latest fiscal period, which was submitted on July 27, 2021.
*Starts Proceed website:https://www.sp-inv.co.jp/en/
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Starts Proceed Investment Corporation published this content on 22 November 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 November 2021 04:43:04 UTC.