CoreSite gets new $350 million term loan, extends revolver to 2023

By Sarah Lizee

Olympia, Wash., Nov. 8 – CoreSite Realty Corp. operating partnership CoreSite, LP amended and restated its credit agreement on Friday to, among other things, extend the term of the $450 million revolver to November 2023 from April 2022 and provide for a new $350 million term loan due in April 2025, according to an 8-K filing with the Securities and Exchange Commission.

The revolver has a one-year extension option, subject to a fee of 10 basis points.

There is a $550 million accordion.

In addition to the new term loan, the operating partnership has $150 million of term loans outstanding under the amended and restated credit agreement, which are due in 2024.

The new term loan was borrowed in full at closing, and the net proceeds are expected to be used to repay in full the operating partnership’s existing term loans due June 2020 and February 2021, to fund continued development across the company’s portfolio and for general corporate purposes.

KeyBanc Capital Markets, RBC Capital Markets, Regions Capital Markets, TD Securities (USA) LLC and Wells Fargo Securities acted as joint lead arrangers and co-syndication agents for the revolver and KeyBanc Capital Markets, RBC Capital Markets, SunTrust Robinson Humphrey, Inc., TD Securities (USA) LLC and Wells Fargo Securities acted as joint lead arrangers and co-syndication agents for the new term loan.

KeyBank, NA is the administrative agent.

Interest is Libor plus 125 bps to 185 bps under the revolver, and 120 bps to 180 bps under the term loan facilities, depending on the operating partnership’s leverage ratio. At closing, interest was Libor plus 125 bps for the revolver and Libor plus 120 for term loans.

The operating partnership elected to swap the variable interest rate associated with $175 million, or 50% of the principal amount of the new term loan facility, to a fixed rate of about 2.79%.

The credit agreement was also amended to change some of the restrictive covenants, including increases or decreases, as applicable, to a number of ratios and other figures in the credit agreement resulting in increased flexibility for the operating partnership.

CoreSite is a Denver-based provider of data center products and interconnection services.

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