CyrusOne Prices $339 Mln Stock Offering

(RTTNews) - CyrusOne Inc. (CONE) said Tuesday that it has priced a public offering of 11.3 million shares of its common stock at a price to the public of $30.00 per share.

The underwriters have been granted an option to purchase up to 1,695,000 additional shares of common stock from CyrusOne at the public offering price, less underwriting discounts.

The offering is expected to close on or about June 26.

CyrusOne will contribute, directly and indirectly, a portion of the net proceeds from the offering to its operating partnership, CyrusOne LP, in exchange for 7 million newly-issued common units of limited partnership interests in the Operating Partnership. The Operating Partnership is expected to use such proceeds to finance, in part, its acquisition of Cervalis Holdings LLC, to pay fees and expenses related to the Cervalis Acquisition and for general corporate purposes. In the event the Operating Partnership does not consummate the Cervalis Acquisition, it is expected to use such proceeds to repay outstanding indebtedness under its revolving credit facility and for general corporate purposes.

In addition, CyrusOne will use the remaining portion of the net proceeds from the offering to acquire 4.3 million OP Units, or 5.995 million OP Units if the underwriters exercise their option to purchase additional shares of CyrusOne's common stock in full, from a subsidiary of Cincinnati Bell Inc.

Upon completion of the offering, Cincinnati Bell will effectively own about 13.7%, or about 11.3% if the underwriters exercise their option to purchase additional shares of CyrusOne's common stock in full, of CyrusOne through its interests in the outstanding shares of common stock of CyrusOne and its interests in OP Units, which are exchangeable into shares of common stock of CyrusOne on a one-for-one basis.