Recently, CoreSite Realty Corporation COR announced that it has amended and expanded its senior unsecured credit facility to $500 million. This expanded credit facility will enhance the Denver, CO-based real estate investment trust’s (“REIT”) liquidity and also support its growth initiatives.
The new facility includes revolving credit facility worth $350 million and a term loan of $150 million. Again, importantly, this credit facility expands the total debt capacity as well as the debt maturity profile of CoreSite. The term loan has a maturity period of 5 years till Jun 2020. On the other hand, the revolving credit facility has a primary maturity period of 4 years, till Jun 2019, with an option to extend it by another year. Further, 50% of the term loan bears a variable rate of interest, while the remaining 50% bears a fixed rate of interest around 2.95%.
Coresite provides data center products and interconnection services in major North American markets. The firm intends to utilize the net proceeds for partial repayment of current revolving credit facility balance. This new credit facility is expected to provide financial flexibility to the company, complementing its strong cash flows and aiding the execution of its growth and development plans.
Coresite currently has a Zacks Rank #3 (Hold).
Investors interested in the REIT industry may consider stocks like Arbor Realty Trust Inc. ABR, Strategic Hotels & Resorts, Inc. BEE and CareTrust REIT, Inc. CTRE. While both Arbor Realty Trust and Strategic Hotels & Resorts sport a Zacks Rank #1 (Strong Buy), CareTrust REIT holds a Zacks Rank #2 (Buy).
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