Cole Corporate Income enters $900 million credit agreement with BofA

By Jennifer Chiou

New York, Oct. 31 - Cole Corporate Income Operating Partnership, LP, the operating partnership of Cole Corporate Income Trust, Inc., entered into on Oct. 25 a $900 million unsecured credit agreement with Bank of America, NA as administrative agent, swingline lender and letter-of-credit issuer, according to an 8-K filed with the Securities and Exchange Commission.

The facility replaces the company's previous $150 million secured credit facility.

The new unsecured credit facility includes a $300 million term loan and allows for up to $600 million of revolver borrowings.

As of Oct. 25, the borrowing base was $688.4 million based on the underlying collateral pool.

The filing noted that up to 15% of the total amount of revolving loans available may be used for issuing letters of credit, and up to 10% of the total amount of revolving loans available, but not greater than $50 million, may be used for swingline loans.

The facility may be increased up to a maximum of $1.25 billion, with each increase being no less than $25 million.

The term loan matures on Oct. 25, 2018, while the revolver comes due one year earlier. There is a one-year extension option.

The revolver bears interest at Libor plus 160 basis points to 240 bps, with the exact margin based on the company's overall leverage ratio.

The term loan and the swingline loans initially bore interest at a rate equal to the Base rate. Effective Oct. 31, the term loan converted to a floating Libor rate. Based on the leverage ratio in effect, the term loan will effectively bear interest at 3.026%.

The unused fee ranges from 25 bps for a leverage ratio of 45% or less to 30 bps at a leverage ratio greater than 60%.

Cole Corporate Income is a Phoenix-based investor and owner of real estate assets.

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