Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an OffBalance Sheet Arrangement of a Registrant. OnSeptember 21, 2021 , pursuant to a partial exercise byNSA OP, LP (the "Operating Partnership") of its expansion option under its second amended and restated credit agreement dated as ofJuly 29, 2019 (as amended, the "Credit Agreement"), theOperating Partnership , as borrower, certain of its subsidiaries that are party to the Credit Agreement, as subsidiary guarantors, andNational Storage Affiliates Trust (the "Company") entered into a first increase agreement and third amendment to the Credit Agreement (the "Increase Agreement") withKeyBank National Association , as Administrative Agent (the "Administrative Agent"), and the lenders party thereto, as the increase lenders, to provide a new tranche E term loan facility ("Term Loan E") in an aggregate outstanding principal amount of$125.0 million , which increases the total borrowing capacity under the credit facility to$1.4 billion , consisting of six components: (i) a$500.0 million revolving line of credit, (ii) a$125.0 million tranche A term loan facility, (iii) a$250.0 million tranche B term loan facility, (iv) a$225.0 million tranche C term loan facility, (v) a$175.0 million tranche D term loan facility and (vi) a$125.0 million Term Loan E. Following this exercise, theOperating Partnership has a remaining expansion option of up to$350 million . If exercised in full, the remaining expansion option would provide for a total borrowing capacity under the credit facility of$1.75 billion . Term Loan E matures onMarch 21, 2027 . It is not subject to any scheduled reduction or amortization payment prior to maturity. Interest rates applicable to loans under Term Loan E are determined based on a 1, 3 or 6 month LIBOR period (as elected by the Company at the beginning of any applicable interest period), plus an applicable margin, or a base rate, determined by the greatest of theKey Bank prime rate, the federal funds rate plus 0.50% or one month LIBOR plus 1.00%, plus an applicable margin. The applicable margins for Term Loan E are leverage based and range from 1.10% to 1.55% for LIBOR loans and 0.10% to 0.55% for base rate loans; provided that after such time as the Company achieves an investment grade rating from at least two rating agencies, the Company may elect (but is not required to elect) that Term Loan E is subject to the rating based on applicable margins ranging from 0.80% to 1.60% for LIBOR Loans and 0.00% to 0.60% for base rate loans. Term Loan E may be prepaid at any time without penalty. Other than the increases and amendments related to Term Loan E, the Increase Agreement did not impact or amend the Credit Agreement's previously disclosed terms, including its covenants, events of default, or terms of payment. The description above is only a summary of the material provisions of the Increase Agreement and is qualified in its entirety by reference to a copy of the Increase Agreement, which will be filed with the Company's next quarterly report on Form 10Q. The Credit Agreement was filed onNovember 1, 2019 as Exhibit 10.1 to the Company's quarterly report on Form 10Q. -1-
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