CoreSite amends revolver, adds $150 million five-year term loan

By Angela McDaniels

Tacoma, Wash., June 25 – CoreSite Realty Corp. operating partnership CoreSite, LP entered into an amended and restated credit agreement on Wednesday that provides for a $350 million revolving credit facility and a $150 million term loan, according to an 8-K filing with the Securities and Exchange Commission.

Prior to the amendment and restatement, the credit agreement provided for a $405 million revolver.

The restated revolver has a four-year term expiring in June 2019, with a one-year extension option, and the term loan has a five-year term maturing in June 2020.

The exercise of the revolver’s extension option is subject to the payment of an extension fee of 10 basis points.

The proceeds from the term loan will be used to partially pay down the current revolver balance.

The interest rate for the term loan is Libor plus a margin that ranges from 150 bps to 220 bps. For the revolver, the interest rate is Libor plus a margin that ranges from 155 bps to 225 bps. Each depends on the operating partnership’s leverage ratio.

The operating partnership elected to swap the variable interest rate associated with $75 million, or 50%, of the principal amount of the term loan to a fixed rate of about 2.95%.

The credit agreement contains a $200 million accordion feature.

The total amount available for borrowings under the credit agreement will be subject to the lesser of (i) an amount that, with all other unsecured debt, does not exceed the value of the eligible real estate assets as described in the credit agreement and the term loan agreement and (ii) a minimum unsecured debt yield.

KeyBank NA is the administrative agent.

The company noted that the credit agreement is in addition to, and does not replace, the term loan agreement dated as of Jan. 31, 2014 with Royal Bank of Canada as administrative agent. On Thursday, that agreement was amended in order to make some changes to conform to the provisions of the amended and restated credit agreement.

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

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