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On March 20, 2012, Cole Real Estate Income Strategy (Daily NAV) Operating Partnership, LP (“Income NAV OP”), the operating partnership of Cole Real Estate Income Strategy (Daily NAV), Inc. (the “Company”), entered into a modification agreement (the “Modification Agreement”) with respect to its secured revolving credit facility (the “Credit Facility”) with JPMorgan Chase Bank, N.A.
The Credit Facility, as disclosed in the Company’s Current Report on Form 8-K filed on December 13, 2011, allowed Income NAV OP to borrow up to $50.0 million in revolving loans, with the maximum amount outstanding not to exceed (i) 70% of the aggregate value allocated to each qualified property comprising the borrowing base (the “Borrowing Base”) during the period from December 8, 2011 through June 7, 2012 (the “Tier One Period”); (ii) 65% of the Borrowing Base during the period from June 8, 2012 to December 7, 2012 (the “Tier Two Period”); and (iii) 60% of the Borrowing Base during the period from December 8, 2012 through December 8, 2014 (the “Tier Three Period”).
The Modification Agreement extended (i) the Tier One Period through the earlier of September 7, 2012 or the date selected by the Company by written notice and (ii) the Tier Two Period through the earlier of March 7, 2013 or the date selected by the Company by written notice. As a result of these extensions, the commencement of the Tier Three Period will be the day following the new termination date of the Tier Two Period. Additionally, the Modification Agreement revised the required percentage of single tenant properties leased to tenants that have an S&P rating of BBB- or better, a Moody's rating of Baa3 or better, or a Fitch Rating of BBB- or better or whose lease obligation is fully guaranteed by an entity that has such ratings that must be included within the Borrowing Base from 85% to 76% through September 7, 2012. Commencing on September 8, 2012, the required percentage of single-tenant properties with such ratings increases from 76% to 85%.
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.