Cincinnati Bell plans Tuesday roadshow start in Los Angeles for $500 million 10-year notes

By Paul A. Harris

Portland, Ore., Oct. 29 - Cincinnati Bell, Inc. will begin a roadshow in Los Angeles for a $500 million offering of 10-year senior notes, according to a syndicate source.

Further roadshow plans include San Francisco on Wednesday, New York City on Thursday and Boston and Baltimore on Friday.

The deal is expected to price on Friday or on the following Monday.

Barclays, Citigroup Global Markets Inc., RBS Securities Inc. and UBS Investment Bank are the joint bookrunners.

The Rule 144A and Regulation S with registration rights notes, which will come with a traditional real estate investment trust covenant package, will be callable with a make-whole call for the first five years and will then become callable at a premium.

Credit ratings remain to be determined.

The company plans to use the $475 million of the proceeds to repay related party notes payable to Cincinnati Bell, which intends to use those proceeds to redeem its outstanding 7% senior notes due 2015, certain of the Cincinnati Bell Telephone notes due 2023, and to conduct a tender offer for a portion of its 8¼% senior notes due 2017 and its 8 3/8% senior notes due 2020. The remaining proceeds will be used for general corporate purposes.

The issuing entities will be CyrusOne LP and CyrusOne Finance Corp., wholly owned subsidiaries of Cincinnati Bell, a Cincinnati-based owner, operator and developer of enterprise-class, carrier-neutral data center properties.

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