Item 2.01. Completion of Acquisition or Disposition of Assets
As previously disclosed, on November 14, 2021, CoreSite Realty Corporation, a
Maryland corporation (the "Company") and CoreSite, L.P., a Delaware limited
partnership (the "Partnership"), entered into an Agreement and Plan of Merger
(the "Merger Agreement"), by and among American Tower Investments LLC, a
California limited liability company and wholly owned subsidiary of American
Tower (as defined below) ("Parent"), Appleseed Holdco LLC, a Delaware limited
liability company and wholly owned subsidiary of Parent ("Holdco"), Appleseed
Merger Sub LLC, a Maryland limited liability company and wholly owned subsidiary
of Holdco ("Purchaser"), Appleseed OP Merger Sub LLC, a Delaware limited
liability company and wholly owned subsidiary of Holdco ("OP Merger Sub" and,
together with Parent, Holdco and Purchaser, the "Parent Parties") and, solely
for purposes of certain provisions specified therein, American Tower
Corporation, a Delaware corporation ("American Tower").
Pursuant to the Merger Agreement, and upon the terms and subject to the
conditions thereof, Purchaser commenced a tender offer (the "Offer"), to
purchase any and all of the outstanding shares (the "Shares") of common stock,
par value $0.01 per share, of the Company at a price of $170.00 per Share,
without interest and subject to any applicable withholding of taxes (the "Offer
Price"), net to the seller in cash.
The Offer expired at one minute after 11:59 p.m., Eastern Time, on December 27,
2021. According to American Stock Transfer & Trust Company, LLC, the depositary
for the Offer, 31,443,126 Shares were validly tendered and not validly withdrawn
in the Offer, representing approximately 71.15% of the outstanding Shares. The
number of Shares tendered satisfied the condition to the Offer that there be
validly tendered and not validly withdrawn a number of Shares that, considered
together with all any Shares beneficially owned by Parent or any wholly owned
subsidiary of Parent, represent at least a majority of all then-outstanding
Shares as of the expiration of the Offer. All conditions to the Offer having
been satisfied or waived, Purchaser accepted for payment all Shares validly
tendered and not validly withdrawn pursuant to the Offer.
Following the consummation of the Offer, the remaining conditions to the
consummation of the Mergers (as defined below) set forth in the Merger Agreement
were satisfied or waived, and on December 28, 2021, (i) Purchaser merged with
and into the Company pursuant to Section 3-106.1 of the Maryland General
Corporation Law, with the Company surviving as a wholly owned subsidiary of
Holdco (the "Company Merger"); (ii) substantially concurrently with the Company
Merger but preceding the Holdco Merger, OP Merger Sub merged with and into the
Partnership, with the Partnership continuing as the surviving limited
partnership (the "Partnership Merger"); and (iii) following the Company Merger
and the Partnership Merger, the Company merged with and into Holdco, with Holdco
continuing as the surviving limited liability company (the "Holdco Merger", and
together with the Company Merger and the Partnership Merger, the "Mergers").
At the effective time of the Company Merger, each Share issued and outstanding
immediately prior to such time (other than (i) certain restricted shares and
(ii) Shares owned by any of the Parent Parties) was converted into the right to
receive an amount in cash equal to the Offer Price. At the effective time of the
Partnership Merger, each Partnership unit issued and outstanding and held by
each limited partner (excluding the Company) of the Partnership was converted
into the right to receive an amount in cash equal to the Offer Price.
At the effective time of the Company Merger, (i) each outstanding Company
restricted stock unit award was cancelled in exchange for the right to receive a
cash payment equal to the product of (a) the number of Shares underlying such
award, and (b) the Offer Price; (ii) 20% of each Company restricted stock award
and each Companyperformance stock award (or, with respect to certain Company
. . .
Item 3.01. Notice of Delisting or Failure to Satisfy a Continued Listing Rule or
Standard; Transfer of Listing
In connection with the consummation of the transactions described in Item 2.01
of this Current Report on Form 8-K, which are incorporated by reference herein,
the Company notified the New York Stock Exchange (the "NYSE") that the Mergers
had been consummated and requested that trading of the Shares on the NYSE be
suspended prior to the opening of trading on December 28, 2021. In addition, the
Company requested that the NYSE file with the SEC a Notification of Removal from
Listing and/or Registration on Form 25 to delist the Shares from the NYSE and
deregister the Shares under Section 12(b) of the Securities and Exchange Act of
1934, as amended (the "Exchange Act"), on December 28, 2021. As a result, the
Shares will no longer be listed on the NYSE. In addition, the Company intends to
file with the SEC a certification on Form 15 under the Exchange Act requesting
the termination of the registration of the Shares under Section 12(g) of the
Exchange Act and the suspension of the Company's reporting obligations under
Sections 13 and 15(d) of the Exchange Act.
Item 3.03. Material Modification to Rights of Security Holders
The information set forth under Items 2.01, 3.01, 5.01 and 5.03 of this Current
Report on Form 8-K is incorporated by reference into this Item 3.03.
As set forth under Item 2.01 of this Current Report on Form 8-K, at the
effective time of the Company Merger, each Share issued and outstanding
immediately prior to such time (other than (i) certain restricted Shares and
(ii) Shares owned by any of the Parent Parties) was converted into the right to
receive an amount in cash equal to the Offer Price. Furthermore, at the
effective time of the Company Merger, each Share issued and outstanding
immediately prior to such time that was subject to a Company restricted stock
award or Companyperformance stock award was cancelled or assumed upon the terms
described in the second to last paragraph of Item 2.01 of this Current Report on
Form 8-K.
Item 5.01. Changes in Control of Registrant
The information set forth under Items 2.01 and 5.02 of this Current Report on
Form 8-K is incorporated by reference into this Item 5.01.
As a result of the completion of the Mergers, a change in control of the Company
occurred, and the Company became a subsidiary of American Tower. Purchaser
obtained the funds necessary to fund the acquisition through proceeds from the
borrowings under (i) (A) its amended and restated multicurrency senior unsecured
revolving credit facility with Toronto Dominion (Texas) LLC ("TD"), as
administrative agent, (B) its amended and restated senior unsecured revolving
credit facility with TD, as administrative agent, and (C) its amended and
restated term loan with Mizuho Bank, Ltd., as administrative agent, pursuant to
which $3.4 billion, $2.1 billion and $500 million, respectively, is available to
finance the acquisition, (ii) a 364-day U.S. Dollar-denominated term loan
agreement for a new $3.0 billion term loan with JPMorgan Chase Bank, N.A.
("JPM"), as administrative agent, and (iii) a 2-year U.S. Dollar-denominated
term loan agreement for a new $1.5 billion term loan with JPM, as administrative
agent.
Item 5.02. Departure of Certain Officers; Election of Directors; Appointment of
Certain Officers; Compensatory Arrangements of Certain Officers
In connection with the completion of the Mergers and as contemplated by the
Merger Agreement, at the effective time of the Company Merger, each of Paul E.
Szurek, Michael H. Millegan, Robert G. Stuckey, Jean A. Bua, Kelly C. Chambliss,
Michael R. Koehler, David A. Wilson and Patricia L. Higgins resigned from the
board of directors of the Company. These resignations were in connection with
the Mergers and not as a result of any disagreements between the Company and the
resigning individuals on any matters relating to the Company's operations,
policies or practices.
In connection with the Holdco Merger, the officers of Holdco immediately prior
to the effective time of the Holdco Merger will be the officers of the surviving
limited liability company in accordance with the terms of the Merger Agreement.
As previously disclosed in the Company's Solicitation/Recommendation Statement
on Schedule 14D-9 filed with the Securities and Exchange Commission on November
29, 2021, as amended, in connection with the completion of the Mergers, the
Company is entering into transition agreements with each of Messrs. Finnin and
McCandless and separation agreements with each of Mr. Szurek and Mr. Smith.
Item 5.03. Amendments to Articles of Incorporation or Bylaws; Change in Fiscal
Year
Pursuant to the terms of the Merger Agreement, at the effective time of the
Holdco Merger, the articles of incorporation and bylaws of the Company ceased to
be in effect and the certificate of formation and limited liability company
operating agreement of Holdco became the certificate of formation and limited
liability company operating agreement of the surviving limited liability
company, in accordance with the terms of the Merger Agreement. Copies of the
certificate of formation and limited liability company operating agreement of
Holdco are attached hereto as Exhibits 3.1 and Exhibit 3.2, respectively, and
are incorporated herein by reference.
Item 9.01. Financial Statements and Exhibits
(d) Exhibits.
Exhibit Description
2.1* Agreement and Plan of Merger, dated November 14, 2021, by and among
CoreSite Realty Corporation, CoreSite, L.P., American Tower Investments
LLC, Appleseed Holdco LLC, Appleseed Merger Sub LLC, Appleseed OP Merger
Sub LLC and, solely for certain provisions specified therein, American
Tower Corporation (incorporated by reference to Exhibit 2.1 to the
Current Report on Form 8-K filed by the Company on November 15, 2021).
3.1 Certificate of Formation of Appleseed Holdco LLC.
3.2 Amended and Restated Limited Liability Company Operating Agreement of
Appleseed Holdco LLC.
104 Cover Page Interactive Data File (embedded within the Inline XBRL
document)
* Schedules omitted pursuant to Item 601(a)(5) of Regulation S-K. CoreSite Realty
Corporation agrees to furnish supplementally a copy of any omitted schedule to
the SEC upon request.
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