Glp J-reit TSE:3281
GLP J REIT : Borrowing of Funds and Signing of Interest Rate Swap Agreement
Source: MarketScreener
December 16, 2021
For Immediate Release
Real Estate Investment Trust Securities Issuer:
GLP J-REIT
Representative: Yoshiyuki Miura, Executive Director
(Security Code: 3281)
Asset Management Company:
GLP Japan Advisors Inc.
Representative: Yoshiyuki Miura, President
Contact: Shinji Yagiba, CFO
(TEL: 03-3289-9630)
Borrowing of Funds and Signing of Interest Rate Swap Agreement
GLP J-REIT announces the borrowing of funds (hereinafter, the "New Borrowings") and the signing of interest rate swap agreements as follows.
1. Details of New Borrowings
Lender | Loan | Interest | Drawdown | Borrowing | Repayment | Repayment | Security |
amount | rate | date | method | date | method | ||
Syndicate of lenders | Borrowing | ||||||
arranged by Sumitomo | Base rate plus | based on | |||||
Mitsui Banking | 4,300 | the | Dec. 10, | ||||
0.205% | |||||||
Corporation, MUFG | million yen | respective | 2027 | ||||
(Note 3) | |||||||
term loan | Lump-sum | ||||||
Bank, Ltd. and Mizuho | |||||||
agreements | |||||||
Bank, Ltd. (Note 1) | Dec. 20, | repayment | Unsecured | ||||
dated | |||||||
on | Not | ||||||
Syndicate of lenders | 2021 | December | |||||
repayment | guaranteed | ||||||
16, 2021 | |||||||
arranged by Sumitomo | date | ||||||
Base rate plus | with the | ||||||
Mitsui Banking | 4,900 | Dec. 19, | |||||
0.345% | lenders | ||||||
Corporation, MUFG | million yen | shown to the | 2031 | ||||
(Note 3) | |||||||
Bank, Ltd. and Mizuho | left as | ||||||
Bank, Ltd. (Note 2) | lenders | ||||||
(Note 1) The syndicate of lenders comprises, Sumitomo Mitsui Banking Corporation, MUFG Bank, Ltd., The Norinchukin Bank and Aozora Bank, Ltd..
(Note 2) The syndicate of lenders comprises, Sumitomo Mitsui Banking Corporation, MUFG Bank, Ltd., Mizuho Bank, Ltd. and The Yamaguchi Bank, Ltd..
(Note 3) The interest payment dates will be on the last day of January, April, July and October from the end of January 2022 inclusive as well as on the repayment date (if such day does not fall on a business day, the interest payment date shall be on the next business day, but if the applicable day is in the following month, the interest payment date shall be on the business day immediately preceding the original date.)
The base rate applicable to the calculation period for the interest payable on an interest payment date shall be the JBA three-month Japanese Yen TIBOR published by the JBATA two business days prior to the interest payment date immediately preceding the respective interest payment date (however, for the first calculation period, the applicable date is the drawdown date); provided, however, that in cases where the calculation period is less than three months, the base rate shall be the base rate corresponding to the relevant period calculated based on the method provided in the loan agreement.
For the JBA three-month Japanese Yen TIBOR as the base rate, please check the JBATA's website (http://www.jbatibor.or.jp/english/).
(Note 4) The interest rate will be converted into a fixed rate through an interest rate swap agreement. For details, please refer to "5. Signing of interest rate swap agreements" below.
2. Reason for New Borrowings
To refinance the existing borrowings (totaling 9,200 million yen), for which repayment date is due on December 20, 2021 (hereinafter, the "Refinance").
3. Amount, use and schedule of expenditure of funds to be procured
- Amount of funds to be procured 9,200 million yen in total
-
Specific use of funds to be procured
The repayment of the existing borrowings (9,200 million yen) - Schedule of expenditure December 20, 2021
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4. Status of loans after the Refinance
(Unit: million yen) | |||
Before | After | Increase | |
the Refinance | the Refinance | (Decrease) | |
Short-term loans (Note) | 50,560 | 41,860 | (8,700) |
Long-term loans (Note) | 245,260 | 253,960 | 8,700 |
Total loans | 295,820 | 295,820 | － |
Investment corporation bonds | 50,700 | 50,700 | － |
Total of loans and investment corporation bonds | 346,520 | 346,520 | － |
(Note) Short-term loans refer to loans with a maturity period of one year or less as of the day of the Refinance, and long-term loans refer to loans with a maturity period of more than one year as of the day of the Refinance. Furthermore, please note that the change in the above table does not match the amount of the Refinance (9,200 million yen), as the existing loan (500 million yen) with a maturity date of December 20, 2022 will be reclassified as a short-term loan on December 20, 2021.
5. Signing of interest rate swap agreements
- Reason for signing the interest rate swap agreements
GLP J-REIT signed the interest rate swap agreements to hedge the risks of interest rate fluctuations by converting the interest rate payable into a fixed rate for New Borrowings.
- Details of the interest rate swap agreement
Counterparty | Notional | Interest rate | Commencement | Termination | Interest payment date |
principal | date | date | |||
Fixed interest rate | The last day of each of January, | ||||
Nomura | 4,300 | payable: 0.0920% | |||
Securities Co., | million yen | Floating interest rate | Dec. 10, 2027 | April, July and October of every year | |
and termination date | |||||
Ltd. | (Note 1) | receivable: JBA 3- | |||
(if such day does not fall on a | |||||
month yen TIBOR | Dec. 20, | business day, the interest payment | |||
date shall be on the next business | |||||
Fixed interest rate | 2021 | ||||
day, but if the applicable day is in the | |||||
Daiwa | 4,900 | payable: 0.1572% | following month, the interest payment | ||
Securities Co. | million yen | Floating interest rate | Dec. 19, 2031 | date shall be on the business day | |
immediately preceding the original | |||||
Ltd. | (Note 2) | receivable: JBA 3- | |||
date.) | |||||
month yen TIBOR | |||||
(Note 1) The swap agreement is related to the loan of 4,300 million yen, which scheduled repayment date is December 10, 2027. For details, please refer to "1. Details of New Borrowings" above. The interest rate will be substantially fixed at 0.297% for the loan by this interest rate swap agreement.
(Note 2) The swap agreement is related to the loan of 4,900 million yen, which scheduled repayment date is December 19, 2031. For details, please refer to "1. Details of New Borrowings" above. The interest rate will be substantially fixed at 0.5022% for the loan by this interest rate swap agreement.
6. Future Outlook
Since the Refinance is already incorporated into the earnings forecast, GLP J-REIT makes no change in the future outlook of earnings forecasts for the fiscal period ending February 2022 (from September 1, 2021 to February 28, 2022) and the fiscal period ending August 2022 (from March 1, 2022 to August 31, 2022) disclosed in the press release titled "Amendment of Forecasts Concerning Operating Status and Distribution for the Fiscal Periods Ending and Ending February 28, 2022 and August 31, 2021" dated December 13, 2021.
7. Other matters necessary for investors' appropriate understanding / judgment of the concerned information
With respect to the risks associated with the New Borrowings, the content of "Investment Risks" stated in the securities report submitted on November 26, 2021 has not changed.
*GLP J-REIT website address: https://www.glpjreit.com/en/
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