Cole Office unit gets $300 million delayed-draw, $200 million revolver

By Sarah Lizee

Olympia, Wash., Dec. 16 – Cole Office & Industrials REIT (CCIT II), Inc. operating partnership Cole Corporate Income Operating Partnership II, LP entered into a new credit agreement on Dec. 10 with JPMorgan Chase Bank, NA as administrative agent, providing for a $300 million delayed-draw term loan facility and an up to $200 million revolver, according to an 8-K filing with the Securities and Exchange Commission.

JPMorgan Chase, Wells Fargo Bank and U.S. Bank NA are joint lead arrangers and joint bookrunners, and Wells Fargo Bank and U.S. Bank are co-syndication agents.

The revolver was undrawn at closing. The lesser of 15% of the total amount of revolving commitments and $30 million may be used for issuing letters of credit.

On Dec. 10, the operating partnership used the proceeds of the term loan facility to repay amounts outstanding under the credit facility dated Dec. 12, 2014, which was set to mature on Dec. 12, 2019.

The amount of the credit facility may be increased up to a maximum of $750 million, subject to some conditions, with each increase being no less than $50 million and integral multiples of $5 million in excess thereof.

The term loan facility matures on Dec. 10, 2024. The revolver matures on Dec. 10, 2023 unless the borrower elects to extend the maturity date for up to two six-month periods, but no later than Dec. 10, 2024.

Borrowings bear interest at Libor plus 140 basis points to 190 bps, depending on the net leverage ratio.

Cole is a real estate investment trust based in Phoenix.

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