CoreSite Boosts Borrowing Capacity to $1.2B
- Nov 12, 2019
Data center developer and owner CoreSite Realty Corp. has extended its debt maturity profile and expanded its credit facility with a total borrowing capacity of $1.2 billion, including all arrangements with its syndicate of banks. CoreSite has addressed all near-term debt maturities by combining and extending its 2020 and 2021 term loan maturities into a $350 million term loan due in April 2025.
This new term loan represents $100 million of incremental borrowing capacity. Additionally, the term of CoreSite’s $450 million revolving credit facility was extended to 2023. The proceeds of the upsized term loan are expected to be used to pay down a portion of the current revolving credit facility balance, fund continued development across CoreSite’s portfolio and for general corporate purposes.
KeyBank was the administrative agent. Co-lead arrangers for the revolving credit and Term Loan III included KeyBanc Capital Markets, RBC Capital Markets, Regions Capital Markets, TD Securities and Wells Fargo Securities.
Co-lead arrangers for Term Loan IV were KeyBanc Capital Markets, RBC Capital Markets, SunTrust Robinson Humphrey Inc., TD Securities and Wells Fargo Securities.
In October, CoreSite opened a new 22-acre data center campus in Reston, Va., which will hit more than 100 MW at full buildout. The campus design features an innovative four-story infrastructure tower that will hold all the chillers, UPS systems, electrical switchgear and cooling towers for the campus’s first two buildings. That in turn reportedly will let CoreSite create larger data halls.
In April, CoreSite began construction on the first phase of a 169,000-square-foot colocation facility in downtown Chicago. It will feature connection via redundant high-count dark fiber to the company’s CH1 data center, its key interconnection hub in Chicago.
A mid-year data center report by JLL found the industry preparing to weather the adoption of 5G, AI and IoT technologies, even as the first half of 2019 saw a substantial slowing of data center demand. Notable moves among the firms included CoreSite announcing SDN inter-site connectivity among its seven edge markets.