27 March 2020
AVI JAPAN OPPORTUNITY TRUST PLC (the "Company")
Debt Facility Amendment Agreement
The Company is pleased to announce that, further to the Debt Facility announced on 5 April 2019 and the subsequent increase of the facility as announced on 14 October 2019, it has now entered into an amendment agreement with Scotiabank Europe plc, increasing the aggregate commitment under the Facility Agreement from Yen 2.930 billion to Yen 4.330 billion.
In addition to the increase of the aggregate commitment, the amendment agreement includes an updated minimum increase amount of 350 million Yen, a maturity date of 364 calendar days after the date of the execution of the Amendment Agreement, as well as an increase in commitment fees. Interest will be payable under the facility at a rate equal to LIBOR plus 1.25 per cent. Other than these amendments the terms of the facility agreement entered into on 5 April 2019 remain in effect, which are typical for a facility of this nature, including net asset value and asset coverage covenants. These terms will be reviewed once markets normalise.
The Company will continue to maintain aggregate borrowings in the medium term to 10-15% of Net Asset Value. The increased facility is to prepare the Company for the resumption of normal market conditions, when further capital raises may take place to take advantage of compelling opportunities in Japan. These additional borrowings in excess of the 10-15% level will therefore be considered to mitigate cash drag in respect of the future issuance of ordinary shares or to capitalise on near term market opportunities. However, for illustrative purposes only, should the additional facility be fully drawn down today, the Company's gearing is expected to be approximately 31 per cent. of the Company's net assets, based on total net assets as at 26 March 2020.
For further information please contact:
Joe Bauernfreund, Asset Value Investors
Tel: 020 7659 4800
LEI: 894500IJ5QQD7FPT3J73
