Stonepeak, an alternative investment firm specialising in infrastructure and real assets, has invested an additional $570.0 million in CoreSite, a hybrid IT solutions provider and subsidiary of American Tower Corporation.
Based on CoreSite’s currently outstanding equity, the investment, coupled with Stonepeak’s initial $2.5 billion investment in August 2022, represents an approximately 36% ownership interest in American Tower’s US data centre business.
The conversion is expected to occur four years from the date of the initial closing in August 2022. The upsize transaction, which was completed on 20 October, 2022, comprises both common equity and mandatorily convertible preferred equity, on the same terms and valuation as the initial investment. Stonepeak’s investment is part of its core infrastructure strategy.
JP 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.