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UNITED URBAN INVESTMENT CORPORATION

(8960)
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United Urban Investment : Notice Concerning Change in Base Interest Rate for Loan Agreement and Interest Rate Swap Agreement Due to Suspension of LIBOR Announcement

10/26/2021 | 03:26am EST

For Translation Purposes Only

October 26, 2021

For Immediate Release

United Urban Investment Corporation

Toshiaki Emon

Executive Officer

(Securities Code: 8960)

Asset Management Company:

Japan REIT Advisors Co., Ltd.

Norimasa Gaun

President and CEO

Inquiries:

Takehide Sasaki

Chief Financial Officer

TEL: +81-3-5402-3680

Notice Concerning Change in Base Interest Rate for Loan Agreement and Interest Rate

Swap Agreement Due to Suspension of LIBOR Announcement

United Urban Investment Corporation ("United Urban") hereby announces its decision, which was made today, to change the base interest rate for loan agreements (borrowings) and interest rate swap agreements (the "Change"), as set forth below.

1. Reason for Change

On March 5, 2021, ICE Benchmark Administration ("IBA") has announced that it intends to cease the publication of LIBOR based on the current methodology refencing rates provided by panel bank (panel-based LIBOR) immediately after end-2021 except for certain US dollar LIBOR settings.

In response to this suspension, United Urban has discussed with the respective financial institutions regarding successor interest rate for the floating interest rate borrowings of United Urban based on the yen LIBOR announced by IBA and the interest rate swap agreements that target the borrowings. United Urban has decided to adopt "TONA compounded setting in arrears rate ("TONA")", which is calculated based on the unsecured call rate (overnight) announced by the Bank of Japan, as the successor interest rate of LIBOR.

United Urban, Lenders and Contractors are planning to revise the relevant agreements described in table of "2. Details of Change" below as of October 29, 2021. Based on the revised agreements, each interest payment will be made in accordance with the new TONA based interest rates from the beginning of the interest rate calculation period (January 20, 2022), which first arrives after January 1, 2022.

For all the relevant borrowings, the interest rate payment is substantially fixed by the interest rate swap agreement corresponding to each loan, and the Change will not affect business performance.

2. Details of Change

  1. Loan agreement (Borrowings)

(Million yen)

Title

Lender

Borrowing

Drawdown Date

Repayment Date

Interest Rate Upper:

Before Change

Amount

Lower:

After Change

IBA one month Euroyen LIBOR

Term

Mizuho

Oct. 2,

Mar. 22,

+0.25%

Loan 99

3,000

TONA + Spread Adjustments between

Bank, Ltd.

2014

2022

(Note 1)

Adjusted Reference Rates and IBOR

Rates (Note 6)

+0.25%

1 / 3

(Million yen)

Title

Lender

Borrowing

Drawdown Date

Repayment Date

Interest Rate Upper:

Before Change

Amount

Lower:

After Change

IBA one month Euroyen LIBOR

Term

Mizuho

Nov. 25,

Jun. 20,

+0.25%

Loan 2B

2,000

TONA + Spread Adjustments between

Bank, Ltd.

2014

2022

(Note 2)

Adjusted Reference Rates and IBOR

Rates (Note 6)

+0.25%

IBA one month Euroyen LIBOR

Term

Mizuho

Jul. 15,

Sep. 20,

+0.25%

Loan 14B

1,300

TONA + Spread Adjustments between

Bank, Ltd.

2015

2023

(Note 3)

Adjusted Reference Rates and IBOR

Rates (Note 6)

+0.25%

IBA one month Euroyen LIBOR

Term

Mizuho

Dec. 4,

Sep. 20,

+0.25%

Loan 21B

1,000

TONA + Spread Adjustments between

Bank, Ltd.

2015

2024

(Note 4)

Adjusted Reference Rates and IBOR

Rates (Note 6)

+0.25%

IBA one month Euroyen LIBOR

Term

MUFG

Dec. 4,

Mar. 21,

+0.28%

Loan 22B

Bank, Ltd.

1,000

TONA + Spread Adjustments between

2015

2024

(Note 5)

(Note 7)

Adjusted Reference Rates and IBOR

Rates (Note 6)

+0.28%

(2) Interest rate swap agreement

(Million yen)

National

F

ixed Paymen

t

Floating Receipt Interest Ra

te

Target

Contractor

Contract Period

Upper:

Before Change

Principal

Interest Rate

Lower:

After Change

Term

Mizuho

From Oct. 2, 2014

IBA one month Euroyen LIBOR

Loan 99

3,000

0.41100%

Bank, Ltd.

to Mar. 22, 2022

TONA + Spread Adjustments between

(Note 1)

Adjusted Reference Rates and IBOR

Rates (Note 6)

Term

Mizuho

From Nov. 25, 2014

IBA one month Euroyen LIBOR

Loan 2B

2,000

0.42200%

Bank, Ltd.

to Jun. 20, 2022

ONA + Spread Adjustments between

(Note 2)

Adjusted Reference Rates and IBOR

Rates (Note 6)

Term

Mizuho

From Jul. 15, 2015

IBA one month Euroyen LIBOR

Loan 14B

1,300

0.49900%

Bank, Ltd.

to Sep. 20, 2023

ONA + Spread Adjustments between

(Note 3)

Adjusted Reference Rates and IBOR

Rates (Note 6)

Term

Mizuho

From Dec. 4, 2015

IBA one month Euroyen LIBOR

Loan 21B

1,000

0.38275%

Bank, Ltd.

to Sep. 20, 2024

ONA + Spread Adjustments between

(Note 4)

Adjusted Reference Rates and IBOR

Rates (Note 6)

Term

MUFG

From Dec. 4, 2015

IBA one month Euroyen LIBOR

Loan 22B

Bank, Ltd.

1,000

0.34500%

to Mar. 21, 2024

ONA + Spread Adjustments between

(Note 5)

(Note 7)

Adjusted Reference Rates and IBOR

Rates (Note 6)

(Notes)

  1. The interest rate of Term Loan 99 has been fixed at 0.66100% due to the interest rate swap agreement, and the real interest rate will not change even after the Change.
  2. The interest rate of Term Loan 2B has been fixed at 0.67200% due to the interest rate swap agreement, and the real interest rate will not change even after the Change.
  3. The interest rate of Term Loan 14B has been fixed at 0.74900% due to the interest rate swap agreement, and the real interest rate will not change even after the Change.
  4. The interest rate of Term Loan 21B has been fixed at 0.63275% due to the interest rate swap agreement, and the real interest rate will not change even after the Change.

2 / 3

  1. The interest rate of Term Loan 22B has been fixed at 0.62500% due to the interest rate swap agreement, and the real interest rate will not change even after the Change.
  2. "Spread Adjustments between Adjusted Reference Rates and IBOR Rates" is an adjustment value applied to minimize value transfer when changing a LIBOR transaction to a successor interest rate transaction. "Cross-Industry Committee on Japanese Yen Interest Rate Benchmarks", which is the Bank of Japan as the secretariat, recommends adjustments for adjusting the difference between IBA one month Euroyen LIBOR and TONA as published by Bloomberg as the values obtained from the median approach over the last 5 years (Annual rate: -0.02923%).
  3. The initial lender and contractor were Mitsubishi UFJ Trust and Banking Corporation, but the contractual status has been succeeded to MUFG Bank, Ltd. as of April 16, 2018.

3. Impact on Business Performance, etc.

As mentioned above, the Change will not affect the real interest rate, so there will be no impact on the business performance of United Urban.

3 / 3

Disclaimer

United Urban Investment Corporation published this content on 26 October 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 October 2021 07:25:07 UTC.


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Kenichiro Okamura Supervisory Officer
Kumiko Sekine Supervisory Officer
Toshiaki Emon Executive Officer
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