Data centre operator CyrusOne has upsized its offering of new common stock and priced it at US$23.25 per share – a 0.8% discount on its previous closing price – to raise US$323m.
CyrusOne is now issuing 13.9 million shares after initially indicating…
Data centre operator CyrusOne has upsized its offering of new common stock and priced it at US$23.25 per share – a 0.8% discount on its previous closing price – to raise US$323m.
CyrusOne is now issuing 13.9 million shares after initially indicating it would sell 12.5 million. The underwriters have a greenshoe option to purchase another 2.1 million shares, which would take the total amount raised to US$372m.
The proceeds will be used to acquire stock from majority shareholder Cincinnati Bell, which spun-off the infrastructure last year and is now looking to sell-down its 69% stake in CyrusOne.
Cincinnati Bell will dispense with 13.9 million shares, and a further 2.1 million should the banks take up their option. This will leave it with approximately 46.9% of CyrusOne, or 43.7% if the underwriters exercise the greenshoe.
The joint-bookrunners on the offering are Citigroup, BofA Merrill Lynch, Barclays, Deutsche Bank and Morgan Stanley. In addition Cantor Fitzgerald, Evercore, KeyBanc Capital Markets,Stephens and UBS are acting as co-managers.
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.
