Item 8.01 Other Events.
On December 5, 2012, CoreSite Realty Corporation (the Company) entered into an underwriting agreement with Citigroup Global Markets Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated and RBC Capital Markets, LLC, as representatives of the underwriters (the Underwriters), pursuant to which the Company agreed to issue and sell 4,000,000 shares of the Companys 7.25% Series A Cumulative Redeemable Preferred Stock, par value $0.01 per share (the Series A Preferred Stock), with a liquidation preference of $25.00 per share. The Company granted the Underwriters a 30-day option to purchase up to an additional 600,000 shares of its Series A Preferred Stock to cover over-allotments, if any. On December 7, 2012, the Underwriters exercised their over-allotment option to purchase an additional 600,000 shares of the Company's Series A Preferred Stock. The offering of 4,600,000 shares of Series A Preferred Stock is expected to close on December 12, 2012, subject to customary closing conditions.
The Company estimates that the net proceeds of the offering, after deducting underwriting discounts and other estimated offering expenses, will be approximately $111.0 million. The Company intends to contribute the net proceeds of the offering to its operating partnership subsidiary, CoreSite, L.P. (the Operating Partnership). The Operating Partnership intends to subsequently use the net proceeds of the offering to temporarily repay borrowings under the Companys revolving credit facility, repay the full amount of the Companys mortgage loan payable on the Companys 12100 Sunrise Valley property and for general corporate purposes, which could include the acquisition of additional properties or to fund development and redevelopment opportunities.
The offering was made pursuant to a shelf registration statement declared effective by the Securities and Exchange Commission on October 20, 2011 (File No. 333-177053), a base prospectus, dated October 20, 2011, included as part of the registration statement, and a prospectus supplement, dated December 5, 2012, filed with the Securities and Exchange Commission pursuant to Rule 424(b) under the Securities Act of 1933, as amended. The Company is filing as Exhibit 5.1 to this Current Report on Form 8-K an opinion of Venable LLP regarding certain matters of Maryland law, including the validity of the shares of Series A Preferred Stock to be issued and sold in the offering.
The foregoing description of the underwriting agreement is a summary and is qualified in its entirety to the terms of the underwriting agreement, which is filed as Exhibit 1.1 to this Current Report on Form 8-K and is incorporated by reference into this Item 1.01.