Tue, Apr. 7, 5:11 PM
- Cincinnati Bell (NYSE:CBB) closed its sale of 14.26M operating partnership units to data-center property owner CyrusOne (NASDAQ:CONE) for $29.8752/unit.
- CyrusOne closed its offering of the same number of shares of common stock at a price of $31.12 to the public. With the deals done, Cincinnati Bell ends up owning about 21.7% of CyrusOne.
- The operating partnership, CyrusOne LP, was formed July 31, 2012.
- After hours, CONE up 1.1%.
- Previously: Cincinnati Bell cashing out of part of CyrusOne investment; stock down 2.8% (Mar. 30 2015)
Apr. 7, 2014, 11:52 AM
- Verizon (VZ -0.3%) is paying $194M in cash to acquire spectrum licenses from Cincinnati Bell (CBB +1%), and is also assuming tower lease obligations. The deal, expected to close in 2H14, has a total value of $210M to CBB.
- CBB plans to wind down its wireless ops and "assist its wireless customers in transitioning their service arrangements to Verizon Wireless or other wireless providers."
- Verizon, perhaps looking to appease regulators, will assign the rights to CBB's spectrum to P-E firm Grain Management, and then lease a portion of it back.
- FierceWireless observes CBB owns a mixture of high-frequency and low-frequency Ohio spectrum. Regulators have been nervous about attempts by Verizon and AT&T to increase their already-massive low-frequency holdings.
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