Stonepeak Infrastructure Partners Kicks in More Money to CoreSite
Posted on 10/30/2022
On October 27, 2022, Stonepeak Infrastructure Partners, on behalf of certain affiliated investment vehicles, invested an additional US$ 570 million, which, together with its initial US$ 2.5 billion investment in August 2022, on a fully converted basis and based on the currently outstanding equity, represents an approximately 36% ownership interest in American Tower’s U.S. data center business. CoreSite is a hybrid IT solutions provider and subsidiary of American Tower Corporation (NYSE: AMT). The conversion is expected to occur four years from the date of the initial closing in August 2022. The upsize transaction was completed on October 20, 2022. The upsize investment comprises both common equity and mandatorily convertible preferred equity, on the same terms and valuation as the initial investment. Stonepeak Infrastructure Partners’ investment is part of its core infrastructure strategy.
J.P. Morgan is serving as lead financial advisor to American Tower, who is also being advised by CDX Advisors. Cleary Gottlieb Steen & Hamilton LLP is serving as principal legal advisor to American Tower, who is also being advised by Sullivan & Worcester LLP with respect to certain REIT and tax matters.
MUFG Bank, Ltd. is serving as sole financial advisor to Stonepeak. Sidley Austin LLP is serving as principal legal advisor to Stonepeak.
In December 2021, CoreSite was acquired by American Tower. In September 2010, CoreSite became a public company via an initial public offering. CoreSite was founded in 2001 as CRG West.