CoreSite Obtains $100 Million Through Five-Year, Senior Unsecured Term Loan Financing
February 05 2014 - 7:30AM
Business Wire
Balances debt profile and extends maturity
schedule
CoreSite Realty Corporation (NYSE:COR), a provider of
network-dense, cloud-enabled enterprise-class data center products
and services, today announced that its operating partnership,
CoreSite, L.P., entered into a new $100 million, five-year, senior
unsecured term loan. The term loan has an accordion feature, which
allows the operating partnership to increase the total commitments
by $100 million, to $200 million, under specified
circumstances.
The senior unsecured term loan ranks pari-passu with CoreSite’s
revolving credit facility and contains the same financial covenants
and other customary restrictive covenants as the revolving credit
facility. CoreSite used the proceeds from the senior unsecured term
loan to retire the approximately $58 million SV1 mortgage loan and
pay down a portion of the company’s outstanding revolving credit
balance.
CoreSite also entered into a $100 million interest rate swap
agreement to fix the interest rate in order to protect against
adverse fluctuations in LIBOR. At CoreSite’s current leverage
ratio, the swap effectively fixes the interest rate at 3.23%.
“We are pleased to announce the closing of the term loan, and
appreciate the continued support of our banking partners. We
believe this financing enables us to secure an attractive interest
rate, balance our debt maturities, and create capacity on our line
of credit to support additional investment,” said Jeff Finnin,
CoreSite’s chief financial officer. “We also believe that retiring
our only remaining mortgage loan and as such converting the company
to an unsecured borrower is an important step toward our long-term
goal of attaining an investment-grade rating.”
About CoreSite
CoreSite Realty Corporation (NYSE:COR) delivers secure and
reliable data center solutions across eight key North American
markets. CoreSite connects, protects and delivers an optimal
performance environment and continued operation of mission-critical
data and IT infrastructure for enterprises and Internet,
private networking, mobility, and cloud service providers.
CoreSite's scalable platform of over two and a half million
square feet of efficient, network-dense, cloud-enabled data center
capacity enables customers to accelerate business performance,
reduce operating costs and increase flexibility across their IT and
communications systems. CoreSite's 350 professionals deliver
best-in-class service by placing customer needs first in supporting
the planning, implementation and operating requirements
foundational to delivering reliable, secure and efficient IT
operating environments.
More than 750 of the world’s leading enterprises, carriers and
mobile operators, content and cloud providers and media and
entertainment companies choose CoreSite to connect, protect and
optimize their performance-sensitive data, applications and
computing workloads. CoreSite provides valuable gateways to global
business opportunities with direct access to more than 275 carriers
and ISPs, inter-site connectivity and CoreSite's Open Cloud
Exchange, which supports rapid, efficient and scalable Ethernet
access to multiple key public clouds, enabling simple, flexible,
multiple-cloud capabilities.
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, which
may cause actual results to differ significantly from those
expressed in any forward-looking statement. These risks include,
without limitation: the geographic concentration of CoreSite's data
centers in certain markets and any adverse developments in local
economic conditions or the demand for data center space in these
markets; fluctuations in interest rates and increased operating
costs; difficulties in identifying properties to acquire and
completing acquisitions; significant industry competition;
CoreSite's failure to obtain necessary outside financing;
CoreSite's failure to qualify or maintain its status as a REIT;
financial market fluctuations; changes in real estate and zoning
laws and increases in real property tax rates; 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.
CoreSite Investor ContactGreer Aviv / CoreSite Investor
Relations Director+1 303-405-1012 / +1
303-222-7276Greer.Aviv@CoreSite.com
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