Investment funds affiliated with The Carlyle Group will sell3.0 million shares of CoreSite RealtyCorp.'s common stock to J.P. Morgan as the sole underwriter in connectionwith an offering.
Upon completion of the offering, the investment funds will continueto hold a total of 13,775,390 partnership units in CoreSite's operating partnershipthat they may elect to redeem in whole or in part for cash or, at CoreSite's election,the units submitted for redemption may be exchanged for common stock on a 1-for-1basis.
If all units owned by the Carlyle funds were tendered for redemptionand the company decided to acquire them using shares of its common stock, the fundswould own a total of 28.9% of CoreSite's issued and outstanding common stock.
The offering is expected to close and settle by May 13, subjectto customary closing conditions.
According to CoreSite, J.P. Morgan plans to offer the commonshares from time to time to purchasers directly, through agents, through brokersin brokerage transactions on the NYSE or to dealers in negotiated transactions orin a combination of such methods of sale.
It may offer the shares at a fixed price, at prevailing marketprices or at negotiated prices.