This English translation is provided for information purposes only. If any discrepancy is identified between this translation and the Japanese original, the Japanese original shall prevail.
May 24, 2019
REIT Issuer:
Japan Hotel REIT Investment Corporation (TSE code: 8985)
Kaname Masuda, Executive Director
Asset Management Company:
Japan Hotel REIT Advisors Co., Ltd.
Hisashi Furukawa, Representative Director and President
Contact:
Makoto Hanamura
General Manager
Investor Relations Department, Operations Division
TEL: +81-3-6422-0530
Notice Concerning Issuance of Investment Corporation Bonds and Prepayment of Loans
Japan Hotel REIT Investment Corporation (hereinafter called "JHR") informs you of its decision to issue investment corporation bonds (hereinafter called "Bonds") and to prepay the loans (hereinafter called "Repayment") today as follows.
- Issuance of investment corporation bonds
1. Summary of investment corporation bonds
- Name of the investment corporation bonds
Eleventh unsecured investment corporation bonds of JHR
(with pari passu covenants among investment corporation bonds) (nickname: Hotel REIT Bond) (hereinafter called "Bonds") - Total amount of Bonds JPY8Bn
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Form of Bonds
Bond certificates will not be issued. Bonds are subject to the Act on Book Entry of Corporate Bonds and Shares. - Issue price
JPY100 for JPY100 of each bond - Redemption price
JPY100 for JPY100 of each bond - Interest rate 0.854%/year
- Amount of each bond JPY1M
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- Offering method Public offering
-
Subscription period
May 27, 2019 (Monday) through June 13, 2019 (Thursday) - Payment date
June 14, 2019 (Friday) - Collateral
Neither collateral nor guarantee is provided for Bonds, and no assets have been particularly secured for Bonds. - Redemption method and date
The total amount of Bonds will be redeemed on June 14, 2029.
Bonds may be repurchased and cancelled any time from the day following the payment date except for case(s) separately determined by the book-entry transfer institution. - Interest payment date
June 14 and December 14 each year
If the payment date falls on a bank holiday, the payment shall be made on the preceding bank business day. - Financial covenants
A negative pledge clause and a clause of conversion from unsecured to secured bonds are applicable. - Rating of bonds
A+ (Japan Credit Rating Agency, Ltd.)
- Bond administrator, issuing agent, and paying agent Resona Bank, Limited
-
Underwriters
SMBC Nikko Securities Inc. Mizuho Securities Co., Ltd. FFG Securities Co., Ltd.
Nishi-Nippon City Tokai Tokyo Securities Co., Ltd.
- Rationale for issuance
To diversify financing sources further by issuing the Bonds mainly to individual investors - Amount of proceeds, use, and planned payment schedule
- Amount of proceeds (ballpark net amount) JPY7,950M
-
Detail of intended use of proceeds and planned payment schedule
Plan to allocate all net amounts of proceeds for prepayment of the existing loans on June 17, 2019 - Proceeds are planned to be deposited in financial institutions until its payment for intended use.
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- Prepayment of the loans
1. Summary of Repayment
- Details of Repayment
JHR plans to allocate the ballpark net amount of eleventh unsecured investment corporation bonds of JHR mentioned above in "I.Issuance of investment corporation bonds" to fund the Repayment. - Repayment amount JPY8,000M
- Scheduled date of Repayment June 17, 2019
- Details of the individual loans subject to Repayment
Loan name | Term Loan 51 |
Lender | The Bank of Fukuoka, Ltd. |
Loan Balance before | JPY1,250M |
Repayment | |
Amount of | JPY450M |
Repayment | |
Date of Borrowing | November 30, 2018 (first installment), April 26, 2019 (second installment) |
Maturity Date | December 30, 2019 |
Interest Rate | Base interest rate (JBA Japanese Yen TIBOR for one month)+0.275% |
Loan Balance after | JPY800M |
Repayment | |
Loan name | Term Loan 52 |
Lender | THE NISHI-NIPPON CITY BANK, LTD. |
Loan Balance before | JPY1,250M |
Repayment | |
Amount of | JPY450M |
Repayment | |
Date of Borrowing | November 30, 2018 (first installment), April 26, 2019 (second installment) |
Maturity Date | December 30, 2019 |
Interest Rate | Base interest rate (JBA Japanese Yen TIBOR for one month)+0.275% |
Loan Balance after | JPY800M |
Repayment | |
Loan name | Term Loan 56 |
Lender | Sumitomo Mitsui Banking Corporation |
Loan Balance before | JPY2,000M |
Repayment | |
Amount of | JPY1,100M |
Repayment | |
Date of Borrowing | April 8, 2019 |
Maturity Date | March 31, 2020 |
Interest Rate | Base interest rate (JBA Japanese Yen TIBOR for one month)+0.275% |
Loan Balance after | JPY900M |
Repayment | |
3 |
Loan name | Term Loan 57 |
Lender | The Bank of Fukuoka, Ltd. |
Loan Balance before | JPY1,000M |
Repayment | |
Amount of | JPY1,000M |
Repayment | |
Date of Borrowing | March 18, 2019 |
Maturity Date | February 28, 2020 |
Interest Rate | Base interest rate (JBA Japanese Yen TIBOR for one month)+0.275% |
Loan Balance after | JPY0 |
Repayment | |
Loan name | Term Loan 58 |
Lender | THE NISHI-NIPPON CITY BANK, LTD. |
Loan Balance before | JPY1,000M |
Repayment | |
Amount of | JPY1,000M |
Repayment | |
Date of Borrowing | March 18, 2019 |
Maturity Date | February 28, 2020 |
Interest Rate | Base interest rate (JBA Japanese Yen TIBOR for one month)+0.275% |
Loan Balance after | JPY0 |
Repayment | |
Loan name | Term Loan 59 |
Lender | Sumitomo Mitsui Banking Corporation |
Loan Balance before | JPY2,550M |
Repayment | |
Amount of | JPY2,550M |
Repayment | |
Date of Borrowing | March 29, 2019 |
Maturity Date | June 28, 2019 |
Interest Rate | Base interest rate (JBA Japanese Yen TIBOR for one month)+0.275% |
Loan Balance after | JPY0 |
Repayment | |
Loan name | Term Loan 60 |
Lender | Mizuho Bank, Ltd |
Loan Balance before | JPY450M |
Repayment | |
Amount of | JPY450M |
Repayment | |
Date of Borrowing | March 29, 2019 |
Maturity Date | February 28, 2020 |
Interest Rate | Base interest rate (JBA Japanese Yen TIBOR for one month)+0.275% |
Loan Balance after | JPY0 |
Repayment | |
4 |
Loan name | Term Loan 61 |
Lender | The Hiroshima Bank, Ltd., |
Loan Balance before | JPY1,000M |
Repayment | |
Amount of | JPY1,000M |
Repayment | |
Date of Borrowing | March 29, 2019 |
Maturity Date | February 28, 2020 |
Interest Rate | Base interest rate (JBA Japanese Yen TIBOR for one month)+0.275% |
Loan Balance after | JPY0 |
Repayment | |
III. Status of interest-bearing debts after the issuance of the Bonds and the Repayment (plan)
(Unit: millions of yen)
Before Issuance | After Issuance | |||
Category | of Bonds and | of Bonds and | Fluctuation | |
Repayment | Repayment | |||
Short-term loans | 8,000 | 900 | (7,100) | |
Long-term loans (*2) | 128,771 | 127,871 | (900) | |
Total loans | 136,771 | 128,771 | (8,000) | |
Total investment corporation bonds | 31,600 | 39,600 | +8,000 | |
Total interest-bearing debts | 168,371 | 168,371 | 0 | |
(*1) The amount is rounded down to the nearest one million yen.
(*2) Long-term loans payable within one year are included in the long-term loans.
The fixed interest rate ratio to the total interest-bearing debt after the issuance of the Bonds and the Repayment is forecasted to be around 96%.
IV. Future Prospects
The impact of the issuance of the Bonds and the Repayment is subtle and no change is required for the operating forecast for the fiscal year ending December 2019 (January 1, 2019 through December 31, 2019).
- Other
With respect to the risks in relation to redemption of Bonds, etc., no important change is required for the "Investment Risks" in the Securities Report submitted on March 20, 2019 (Japanese only).
* Website of Japan Hotel REIT Investment Corporation: http://www.jhrth.co.jp/en/
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Japan Hotel REIT Investment Corporation published this content on 24 May 2019 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 24 May 2019 03:42:07 UTC