Translation of Japanese Original
To All Concerned Parties
January 12, 2017
REIT Issuer: Kenedix Office Investment Corporation Naokatsu Uchida, Executive Director
(Securities Code: 8972)
Asset Management Company: Kenedix Real Estate Fund Management, Inc. Ryosuke Homma, CEO and President
Inquiries: Hikaru Teramoto
General Manager of Planning Department
Office REIT Division TEL: +81-3-5623-8979
Notice Concerning Debt Financing (Series 136) and the Execution of an Interest Rate Swap AgreementKenedix Office Investment Corporation ("the Investment Corporation") today announced its decision to undertake debt financing (total of ¥1,000 million) and the execution of an interest rate swap agreement.
Please see below for additional 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
136-A
Sumitomo Mitsui Trust Bank, Limited
¥500
million
Base rate (JPY TIBOR
for 1 month)
+ 0.25000%
January 12,
2017
January 16,
2017
January 31,
2018
Unsecured, unguaranteed
・
Repayment of principal in full on maturity date
136-B
¥500
million
Base rate (JPY TIBOR
for 1 month)
+ 0.60000%
January 31,
2027
Note 1: The first interest payment is due at the end of January 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 136 is to apply the fund towards the repayment of Series 80 (¥1,000 million) with the principal repayment date of January 16, 2017.
- Interest Rate Swap Agreement
Purpose
For a hedge against possible increases in future interest rate for Series 136-B with floating interest rate.
Details of the Interest Rate Swap Agreement
Series 136-B
Counterparty
Sumitomo Mitsui Trust Bank, Limited
Notional Amount
¥500 million
Interest Rate
Fixed interest rate for payment
0.25960%
Floating interest rate for receipt
Base rate (JPY TIBOR for 1 month)
Commencement Date
January 16, 2017
Termination Date
January 31, 2027
Payment Date
The first payment is due at the end of January 2017, and on the last day of every month thereafter, with January 31, 2027. (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: By entering into the interest rate swap agreement, the interest rate for Series 136-B is essentially fixed at 0.85960%.
-
Status of Debt Financing and Corporate Bonds after the Borrowings (as of January 16, 2017)
(Millions of yen)
Classification
Balance before the Borrowings
Balance after the Borrowings
Difference
Short-Term Borrowings (Note 1)
4,000
4,000
0
Long-Term Borrowings (Note 2)
164,800
164,800
0
Total Borrowings
168,800
168,800
0
Corporate Bonds
9,300
9,300
0
Total Borrowings and Corporate Bonds
178,100
178,100
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 July 28, 2016).
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 January 12, 2017. However, no assurance or warranties are given for the completeness or accuracy of this English translation.
Kenedix Realty Investment Corporation published this content on 12 January 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 12 January 2017 06:43:05 UTC.
Original documenthttp://www.kdo-reit.com/file/en-news-cf757572c6f86f096ac54a8c749659c878d545a1.pdf
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