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COLE CREDIT PROPERTY TRUST V, INC. FILES (8-K) Disclosing Entry into a Material Definitive Agreement

May 1, 2014

Item 1.01 Entry into a Material Definitive Agreement

On April 25, 2014, Cole Operating Partnership V, LP, a Delaware limited partnership ("CCPT V OP"), the operating partnership of Cole Credit Property Trust V, Inc. (the "Company"), entered into a secured revolving credit facility (the "Credit Facility") providing for up to $50.0 million of borrowings pursuant to a credit agreement (the "Credit Agreement") with J.P. Morgan Securities, LLC, as sole lead arranger and sole bookrunner, JPMorgan Chase Bank, N.A. ("JPMorgan Chase") as administrative agent, swing line lender, letter of credit issuer, syndication agent, and documentation agent, and other lending institutions that may become parties to the Credit Agreement (collectively with JPMorgan Chase, the "Lenders"). The Credit Facility allows CCPT V OP to borrow up to $50.0 million in revolving loans (the "Revolving Loans"), with the maximum amount outstanding not to exceed the borrowing base (the "Borrowing Base"), calculated as (i) 70% of the aggregate value allocated to each qualified property comprising eligible collateral (each, a "Qualified Property" and collectively, the "Qualified Properties") during the period from April 25, 2014 through April 24, 2015; (ii) 65% of the aggregate value allocated to the Qualified Properties during the period from April 25, 2015 through April 24, 2016; and (iii) 60% of the aggregate value allocated to the Qualified Properties thereafter. The aggregate value of the Qualified Properties is either the net operating income, as defined in the Credit Agreement, of the respective Qualified Property divided by 7.5%, or the purchase price of the respective Qualified Property, depending upon the Company's length of ownership of the respective Qualified Property. Up to 15% of the total amount available may be used for issuing letters of credit and up to 10% of the Credit Facility, not to exceed $50.0 million, may be used for issuing short term (ten business day) advances (the "Swing Line Loans"). Subject to meeting certain conditions described in the Credit Agreement and the payment of certain fees, the amount of the Credit Facility may be increased up to a maximum of $750.0 million. Additionally, subject to meeting certain conditions described in the Credit Agreement, including obtaining Qualified Properties with an aggregate value of $500.0 million, the secured Credit Facility may be converted to an unsecured credit facility, at which time certain terms and conditions, including interest rates, will be adjusted as described in the Credit Agreement. The Credit Facility, letters of credit and Swing Line Loans mature on April 25, 2017; however, CCPT V OP may elect to extend the maturity dates of such loans to April 25, 2019 subject to satisfying certain conditions described in the Credit Agreement. The Revolving Loans will bear interest at rates depending upon the type of loan specified by CCPT V OP. For a eurodollar rate loan, as defined in the Credit Agreement, the interest rate will be equal to the one-month, two-month, three-month or six-month LIBOR for the interest period, as elected by CCPT V OP, multiplied by the Statutory Reserve Rate (as defined in the Credit Agreement), plus the applicable rate (the "Eurodollar Applicable Rate"). The Eurodollar Applicable Rate is based upon the overall leverage ratio, generally defined in the Credit Agreement as the total consolidated outstanding indebtedness of the Company divided by the total consolidated asset value of the Company (the "Leverage Ratio"), and ranges from 1.90% at a Leverage Ratio of 50% or less to 2.75% at a Leverage Ratio greater than 65%. For base rate committed loans, the interest rate will be a per annum amount equal to the greater of (i) JPMorgan Chase's Prime Rate; (ii) the Federal Funds Effective Rate (as defined in the Credit Agreement) plus 0.50%; or (iii) one-month LIBOR multiplied by the Statutory Reserve Rate (as defined in the Credit Agreement) plus 1.0% plus the applicable rate (the "Base Rate Applicable Rate"). The Base Rate Applicable Rate is based upon the Leverage Ratio, and ranges from 0.90% at a Leverage Ratio of 50% or less to 1.75% at a Leverage Ratio greater than 65%. CCPT V OP paid certain fees under the Credit Agreement, including up-front fees. CCPT V OP will also pay an annual administrative agent fee, as well as an annualized fee for any unused portion of the Credit Facility (the "Unused Fee"). The Unused Fee is equal to the daily undrawn amount multiplied by a per annum percentage for such day (as determined for a 360 day year) equal to 0.30%. CCPT V OP also must pay certain fees upon the issuance of each letter of credit under the Credit Agreement and a quarterly fee based on the outstanding face amount of any letters of credit issued under the Credit Facility. CCPT V OP has the right to prepay the outstanding amounts under the Credit Facility, in whole or in part, without premium or penalty provided that (i) prior written notice is received by the administrative agent; (ii) any prepayment of eurodollar rate loans shall be in a principal amount of $5.0 million or a whole multiple of $1.0 million in excess thereof; and (iii) any prepayment of base rate committed loans shall be in a principal amount of $500,000 or a whole multiple of $100,000 in excess thereof or, in each case, if less, the entire principal amount then outstanding. The Credit Agreement contains customary representations, warranties, borrowing conditions and affirmative, negative and financial covenants, including minimum net worth, debt service coverage and leverage ratio requirements, maximum variable rate, recourse debt requirements and dividend payout requirements. The Credit Agreement also contains requirements for minimum equity raise ranging from $20.0 million on September 30, 2014 to $195.0 million on June 30, 2016. The Credit Agreement also includes usual and customary events of default and remedies for facilities of this nature. Upon the occurrence of any event of default, the eurodollar rate loans and base rate committed loans will bear interest payable at an interest rate equal to 2.0% per annum above the interest rate that would otherwise be applicable at that time, until the default is cured. 2 -------------------------------------------------------------------------------- Similarly, the letter of credit fees described above will be increased to a rate of 2.0% above the letter of credit fee that would otherwise be applicable at that time. In addition to CCPT V OP breaching any of the terms of the Credit Agreement or related loan documents, events of default include, but are not limited to: (1) the failure to pay any principal when due; (2) the failure to pay interest and fees within five business days after the due date; (3) the occurrence of a change of control; (4) the inability to pay debts as they become due; (5) a material inaccuracy of any representation or warranty; (6) the bankruptcy or insolvency of CCPT V OP or any consolidated subsidiary providing a guaranty; (7) a violation of any financial, negative or other covenants; (8) a violation of ERISA regulations; and (9) judgments against CCPT V OP or any consolidated subsidiary in excess of $15.0 million or $50.0 million in aggregate that remain unsatisfied or unstayed for 60 days. If an event of default occurs and is not cured timely, the Lenders shall have no obligation to make further disbursements under the Credit Facility and all outstanding loans shall be immediately due and payable. As of April 25, 2014, the Borrowing Base under the Credit Facility based on the underlying collateral pool for Qualified Properties was approximately $2.3 million and the amount outstanding under the Credit Facility was approximately $353,000. Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant



The information set forth under Item 1.01 of this Current Report on Form 8-K is hereby incorporated by reference into this Item 2.03.

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