Monday, June 29, 2015

CoreSite Announces $500 Million Credit Facility

CoreSite Realty Corporation, which operates high-performance data centers across the US, announced an amended and expanded $500 million senior unsecured credit facility.

The credit facility, consisting of a $350 million revolving credit facility and a $150 million term loan, extends CoreSite’s debt maturity profile and increases total debt capacity. The revolving credit facility has a four-year primary term, expiring in June 2019, with a one-year extension option, while the term loan has a five-year term maturing in June 2020. The term loan bears interest at a variable rate, and CoreSite elected to swap the variable interest rate associated with $75 million, or 50% of the principal amount of the term loan facility, to a fixed rate of approximately 2.95%. Net proceeds from the term loan will be used to partially pay down the current revolving credit facility balance.

KeyBank National Association served as administrative agent, and KeyBanc Capital Markets, RBC Capital Markets LLC, Regions Capital Markets and TD Securities (USA) LLC, all served as joint lead arrangers and joint book managers.

“The $500 million credit facility allows us to increase our overall liquidity, decrease our cost of borrowing, and maintain both financial flexibility and a balance between fixed and variable-priced instruments in our capital structure," said Jeff Finnin, CoreSite’s Chief Financial Officer. "When combined with our strong cash flows and balance sheet, the credit facility supports our future growth and development initiatives. We would like to thank our lending institutions for their continued support of CoreSite."

http://www.CoreSite.com


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