Cincinnati Bell 2013 Annual Report Download - page 249

Form 10-K/A Part IV Cincinnati Bell Inc.
CyrusOne Inc. and CyrusOne LP
NOTES TO CONSOLIDATED AND COMBINED FINANCIAL STATEMENTS—(continued)
11. Noncontrolling Interests—Operating Partnership
Noncontrolling interests represent the limited partnership interests in the Operating Partnership held by
individuals and entities other than CyrusOne Inc.
The following table shows the ownership interests in the Operating Partnership as of December 31, 2013:
December 31, 2013
Number of Units Percentage of Total
The Company ................................................... 22.0 34.1%
Noncontrolling interests consist of:
Data Center Investments Holdco* ............................... 18.1 28.0%
Data Center South Holdings* .................................. 24.5 37.9%
Total .......................................................... 64.6 100.0%
* Both entities are wholly-owned subsidiares of CBI
On August 6, 2012, CyrusOne issued 100 shares of its common stock to CBI for $1,000 in connection with
its initial capitalization. During 2012, transaction costs of $7.1 million associated with our initial public offering
were paid by CBI and reflected as a contribution from Parent in our financial statements.
Prior to November 20, 2012, the Predecessor was not a separate legal entity and was operated by CBI during
the periods presented. At December 31, 2011, divisional control represented CBI’s net investment in the
Predecessor. In 2011, the Predecessor distributed $7.8 million to CBI.
At December 31, 2012, partnership capital represented CBI’s net investment in CyrusOne LP. On
November 20, 2012, CyrusOne LP received a contribution of interests in the real estate properties from CBI. In
exchange, CyrusOne LP issued 123,688,687 operating partnership units to CBI. CBI also assumed certain of the
Predecessor’s intercompany payables and other liabilities of $203.5 million. Subsequent to December 31, 2012,
CyrusOne LP executed a 2.8 to 1.0 reverse unit split, resulting in CBI owning 44,102,556 operating partnership
units. On January 24, 2013, CBI exchanged 1,500,000 operating partnership units for common shares of
CyrusOne Inc.
12. Stockholders’ Equity and Partnership Capital
On January 24, 2013, CyrusOne Inc. closed its initial public offering of 18,975,000 shares of common stock
at a price of $19.00 per share, which included a 2,475,000 share over-allotment option that was exercised by the
underwriters. As a result of the initial public offering, CyrusOne Inc. raised a total of $360.5 million in gross
proceeds, and retained approximately $337.1 million in net proceeds after deducting underwriting discounts and
commissions of $23.4 million. CyrusOne Inc. used the amount of the net proceeds from the offering to purchase
approximately 19.0 million of CyrusOne LP’s operating partnership units. In addition, CyrusOne Inc. issued
approximately 1.0 million of common shares to directors and employees. Vesting of these shares is contingent
upon completion of service. Following the completion of these transactions, CyrusOne Inc. and CyrusOne GP
held a combined 33.9% interest in CyrusOne LP, with the remaining 66.1% interest held by CBI.
CyrusOne Inc. and CyrusOne LP stockholders’ equity and partnership capital were $780.4 million at
December 31, 2013.
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Form 10-K/A