US telco Cincinnati Bell has lowered its holding in CyrusOne through a public offering of the data centre subsidiary’s stock.
Cincinnati Bell’s stake fell from 69% to 43.7% after CyrusOne sold US$372m of new shares, which it used to buy 15.9 million…
US telco Cincinnati Bell has lowered its holding in CyrusOne through a public offering of the data centre subsidiary’s stock.
Cincinnati Bell’s stake fell from 69% to 43.7% after CyrusOne sold US$372m of new shares, which it used to buy 15.9 million shares off the regional operator and transfer the equity to new investors.
Citigroup, BofA Merrill Lynch, Barclays, Deutsche Bank and Morgan Stanley acted as joint bookrunners on the offering. Cantor Fitzgerald, Evercore, KeyBanc Capital Markets, Stephens and UBS were co-managers.
The underwriters had a 2.1 million-share greenshoe option which was exercised in full.
Cincinnati Bell listed the unit in January 2013, selling just shy of 19 million shares in its subsidiary for US$19 a piece to raise US$360m.
CyrusOne operates as a real estate investment trust (Reit), which receive special tax considerations and typically offer investors high yields as they have to distribute a minimum of 90% of their taxable profits as dividends.
It owns 25 data centres, 23 of which are in the US. The other two are in London and Singapore.
