CoreSite Realty Corporation Announces Closing of $150 million of 3.75% Senior Notes Offering
May 06 2020 - 4:39PM
Business Wire
CoreSite Realty Corporation (NYSE:COR) (“CoreSite”), a premier
provider of secure, reliable, high-performance data center, cloud
access and interconnection solutions across the U.S., today
announced that its operating partnership, CoreSite, L.P. (the
“Operating Partnership”), agreed to issue and sell an aggregate
principal amount of $150 million of its 3.75% senior notes due May
6, 2027 (the “Notes”), in a private placement to certain
“accredited investors” pursuant to Section 4(a)(2) of the
Securities Act of 1933, as amended (the “Securities Act”).
An aggregate principal amount of $100 million of the Notes was
issued on May 6, 2020, and an aggregate principal amount of $50
million is expected to be issued by the Operating Partnership on or
prior to July 14, 2020.
Interest on the Notes is payable semiannually, on the 15th day
of June and December in each year, commencing on December 15, 2020.
The proceeds from the Notes will be used to refinance existing debt
and for general corporate purposes. The Notes are senior unsecured
obligations of the Operating Partnership and are jointly and
severally guaranteed by CoreSite and each of the Operating
Partnership’s subsidiaries that guarantees indebtedness under the
Operating Partnership’s senior unsecured credit facilities.
“The successful execution of this offering affords us the
financial flexibility to repay outstanding amounts on our revolving
credit facility and provides us with additional liquidity to fund
future development projects without the need to access additional
capital in the near-term,” said Jeff Finnin, Chief Financial
Officer at CoreSite. “Additionally, I would like to thank our
lending institutions for their continued support of CoreSite and to
our team of professionals for successfully completing this
transaction.”
The Notes and the guaranties thereof will not be and have not
been registered under the Securities Act or any state securities
laws and may not be offered or sold absent registration under the
Securities Act, or pursuant to an applicable exemption from, or in
a transaction not subject to, the registration requirements of the
Securities Act and applicable state securities laws.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of,
the Notes or the guaranties thereof in any state or jurisdiction in
which such offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of any such
state or jurisdiction.
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 1,350 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.
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,
including the future issuance of Notes. 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:
the geographic concentration of CoreSite’s data centers in certain
markets and any adverse developments in local economic conditions
or the level of supply of or 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,
including indirect competition from cloud service providers;
failure to obtain necessary outside financing; the ability to
service existing debt; the failure to qualify or maintain
CoreSite’s status as a REIT; financial market fluctuations; changes
in real estate and zoning laws and increases in real property tax
rates; the effects on CoreSite’s business operations, demand for
its services and general economic conditions resulting from the
spread of the novel coronavirus (“COVID-19”) in CoreSite’s markets,
as well as orders, directives and legislative action by local,
state and federal governments in response to such spread of
COVID-19; 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/20200506006066/en/
CoreSite Contact Carole Jorgensen Vice President of
Investor Relations and Corporate Communications 303-405-1012
carole.jorgensen@coresite.com
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