Cole Corporate Income eliminates provision linking credit agreement maturity with asset value

By Wendy Van Sickle

Columbus, Ohio, March 24 – Cole Corporate Income Operating Partnership II, LP eliminated a provision that would trigger the early maturity, under certain conditions, of commitments under its credit agreement with JPMorgan Chase as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

Specifically, the provision that was eliminated under the March 18 modification to the credit agreement had called for commitments and loans outstanding under the agreement to mature on Sept. 30, 2017 if the company does not reach $1 billion in total asset value prior to March 31.

The modification also eliminated certain related provisions, including the requirement that certain payments be made in order to remove property from the borrowing base during the period of March 31 through Sept. 30, 2017.

The eliminated provision had been added under a December 2014 amendment and restatement of the credit agreement. The borrowings will now mature on Dec. 12, 2018 in the case of revolving loans and Dec. 12, 2019 in the case of term loans, which were the maturity dates previously set for the borrowings only if the company met the asset value requirement.

All other material terms of the facility remain unchanged.

Regions Bank and U.S. Bank NA are the co-syndication agents. Capital One, NA is the co-documentation agent.

Cole Corporate is the operating partnership of Phoenix-based Cole Office & Industrial REIT (CCIT II), Inc.

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