US local exchange carrier Cincinnati Bell has priced and upsized a bond issued by two of its wholly-owned subsidiaries.
At the end of October data centre business CyrusOne and CyrusOne Finance Corp revealed they planned to offer US$500m of 10-year…
US local exchange carrier Cincinnati Bell has priced and upsized a bond issued by two of its wholly-owned subsidiaries.
At the end of October data centre business CyrusOne and CyrusOne Finance Corp revealed they planned to offer US$500m of 10-year notes, which has now been upped to US$525m.
The notes carry a coupon of 6.375% and priced at par.
Cincinnati Bell intends to use US$480m of the proceeds received from CyrusOne’s issuance to repay debt.
It plans to redeem its outstanding 7% senior notes due 2015 and a portion of Cincinnati Bell Telephone notes due 2023, and to conduct a tender offer for a portion of its 8.25% senior notes due 2017, its 8.375% senior notes due 2020, and to repay other debt.
In August Cincinnati Bell said it would list CyrusOne in a flotation that could raise up to US$300m for the telco, with the data centre business operating as a REIT.
Cincinnati Bell said a portion of the proceeds from the IPO will be used to repay outstanding debts owed to it by CyrusOne.
