CoreSite Announces Amended and Expanded Credit Facility Increasing Total Borrowing Capacity to $1.05 Billion
April 20 2018 - 07:00AM
Business Wire
Increases available liquidity to fund ongoing
organic growth and development pipeline
CoreSite Realty Corporation (NYSE:COR), a premier provider of
secure, reliable, high-performance data center and interconnection
solutions across the U.S., today announced that it has closed on an
amended and expanded credit facility with total borrowing capacity
of $1.05 billion, including all arrangements with its syndicate of
banks.
The amendment and expansion increases the revolving credit
facility by an incremental $100 million of borrowing capacity, to
$450 million and extends the primary term of the facility to April
2022, with a one-year extension option.
In addition, CoreSite entered into a new five-year, $150
million term loan under the amended credit facility. The new
$150 term loan matures in April 2023, and bears interest at a
variable rate of LIBOR plus 140 basis points. CoreSite elected
to swap the variable interest rate associated with $75 million of
the term loan to a fixed rate of approximately 4.11%. As of March
31, 2018, pro forma for the financing and related swap, CoreSite’s
ratio of fixed versus variable rate debt would be 47% fixed versus
53% variable, in line with CoreSite’s stated goal of maintaining a
balance between fixed and variable-priced instruments in its
capital structure.
The proceeds of this term loan are expected to be used to pay
down a portion of the current revolving credit facility balance, to
fund continued development across CoreSite’s portfolio, and for
general corporate purposes.
KeyBank National Association served as administrative agent, and
KeyBanc Capital Markets, RBC Capital Markets LLC, Regions Capital
Markets, TD Securities (USA) LLC, and Wells Fargo Securities, LLC
all served as joint lead arrangers and joint book managers.
“We are pleased to increase our liquidity by $250 million, which
supports the continued growth of our company by enabling us to
finance existing and future development projects,” said Jeff
Finnin, CoreSite’s Chief Financial Officer. “We appreciate the
support of our banking relationships to provide us with the
financial flexibility to continue to profitably grow and meet our
customer needs.”
About CoreSite
CoreSite Realty Corporation (NYSE:COR) delivers secure,
reliable, high-performance data center and interconnection
solutions to a growing customer ecosystem across eight key North
American markets. More than 1,200 of the world’s leading
enterprises, network operators, cloud providers, and supporting
service providers choose CoreSite to connect, protect and optimize
their performance-sensitive data, applications and computing
workloads. Our scalable, flexible solutions and 450+ dedicated
employees consistently deliver unmatched data center options — all
of which leads to a best-in-class customer experience and lasting
relationships. For more information, visit www.CoreSite.com.
Forward Looking Statements
This press release may contain forward-looking statements within
the meaning of the federal securities laws. Forward-looking
statements relate to expectations, beliefs, projections, future
plans and strategies, anticipated events or trends and similar
expressions concerning matters that are not historical facts. In
some cases, you can identify forward-looking statements by the use
of forward-looking terminology such as "believes," "expects,"
"may," "will," "should," "seeks," "approximately," "intends,"
"plans," "pro forma," "estimates" or "anticipates" or the negative
of these words and phrases or similar words or phrases that are
predictions of or indicate future events or trends and that do not
relate solely to historical matters. Forward-looking statements
involve known and unknown risks, uncertainties, assumptions and
contingencies, many of which are beyond CoreSite's control that may
cause actual results to differ significantly from those expressed
in any forward-looking statement. These risks include, without
limitation: any adverse developments in local economic conditions
or the demand for data center space in these markets; operational
difficulties, including difficulties relating to information
systems, internal processes and information security; significant
industry competition; financial market fluctuations; and other
factors affecting the real estate industry generally. All
forward-looking statements reflect CoreSite's good faith beliefs,
assumptions and expectations, but they are not guarantees of future
performance. Furthermore, CoreSite disclaims any obligation to
publicly update or revise any forward-looking statement to reflect
changes in underlying assumptions or factors, of new information,
data or methods, future events or other changes. For a further
discussion of these and other factors that could cause CoreSite's
future results to differ materially from any forward-looking
statements, see the section entitled "Risk Factors" in CoreSite's
most recent annual report on Form 10-K, and other risks described
in documents subsequently filed by CoreSite from time to time with
the Securities and Exchange Commission.
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version on businesswire.com: https://www.businesswire.com/news/home/20180420005098/en/
CoreSiteGreer Aviv, 303-405-1012Vice President of
Investor Relations and Corporate
CommunicationsGreer.Aviv@CoreSite.com
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