CoreSite Realty Corporation (NYSE:COR) (“CoreSite”), a premier provider
of secure, reliable, high-performance data center 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 $400 million of senior
notes (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”). The proceeds from the Notes will be used
to pay down outstanding amounts on the revolving portion of its senior
unsecured credit facilities and for general corporate purposes.
The Notes will be issued in two series: the Operating Partnership’s
4.11% Series A Senior Notes due April 17, 2026 (the “Series A Notes”)
and its 4.31% Series B Senior Notes due April 17, 2029 (the “Series B
Notes”). After giving effect to cancellation costs incurred in
connection with the termination of an interest rate swap agreement
entered into in anticipation of the issuance of the Notes, the Series A
Notes will bear an effective interest rate of 4.52% per annum. An
aggregate principal amount of $200 million of the Series A Notes and
$125 million of the Series B Notes was issued on April 17, 2019, and an
aggregate principal amount of $75 million of the Series B Notes is
expected to be issued by the Operating Partnership prior to July 17,
2019. Interest on the Notes is payable semiannually on the 15th day of
August and February in each year, commencing on February 15, 2020. 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
its senior unsecured credit facilities.
“The successful execution of this private placement offering addresses
our liquidity needs, provides incremental capital needed to finance our
robust development pipeline, allows us to maintain a balance between
fixed and variable rate debt instruments, and extends our debt maturity
profile,” said Jeff Finnin, Chief Financial Officer at CoreSite.
“Additionally, I would like to extend a thanks to our lending
institutions for their 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 Series B 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: 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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