Cincinnati Bell is reducing its ownership of CyrusOne by selling 12.5 million of its units in CyrusOne’s operating partnership, CyrusOne LP.
CyrusOne began a public offering of 12.5 million new shares yesterday.
Participating underwriters have an option to purchase up to 1.875 million additional shares at the same price, if demand warrants.
When this offer is completed, Cincinnati Bell expects to own 49.0 percent (or 46.1 percent if the over-allotment option is exercised) of CyrusOne through its interests in shares of CyrusOne and common units of CyrusOne LP. As of the end of the first quarter of 2014, Cincinnati Bell said it owned 68 percent of CyrusOne.
Driven by the demand for cloud and colocation services, CyrusOne reported $78 million in first-quarter 2014 revenues, up 29 percent year-over-year. Likewise, CyrusOne’s first quarter of 2014 adjusted EBITDA totaled $42 million, up 32 percent compared to the same period a year ago.