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Cincinnati Bell Inc. (NYSE: CBB) today announced the pricing of the previously announced offering of Senior Notes due 2022 (the “Notes”) by its wholly-owned subsidiaries CyrusOne LP and CyrusOne Finance Corp. The offering was increased from $500 million to $525 million in aggregate principal amount. The Notes will be guaranteed by CyrusOne Inc. and certain of its subsidiaries. The Notes will have an interest rate of 6.375% per annum and will be issued at a price equal to 100% of their face value.
The net proceeds from the offering will be approximately $511 million, after deducting commissions and expenses payable by the Issuers. The Issuers anticipate using $480 million of the net proceeds from the sale of the Notes to repay related party notes payable to Cincinnati Bell, with the remaining $31 million being retained by CyrusOne LP for working capital, capital expenditures and general corporate purposes. Cincinnati Bell intends to use the proceeds received from CyrusOne to redeem its outstanding 7% Senior Notes due 2015 and certain of the Cincinnati Bell Telephone notes due 2023, to conduct a tender offer for a portion of its 8.25% Senior Notes due 2017 and its 8.375% Senior Notes due 2020, and to repay other debt.
The Notes will be offered in the United States to qualified institutional buyers under Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), and to persons outside of the United States under Regulation S under the Securities Act. The Notes and the related guarantees will not be registered under the Securities Act or any state securities laws, and, unless so registered, may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
This press release does not constitute an offer to sell or a solicitation to buy the securities described herein, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.