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Subsequent Events
12 Months Ended
Dec. 31, 2012
Subsequent Events [Abstract]  
Subsequent Events [Text Block]
Subsequent Events

On January 24, 2013, CyrusOne, our data center colocation business, 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. Following the closing of the IPO, we own a 69% economic interest in CyrusOne through our interests in the outstanding shares of common stock of CyrusOne and our limited partnership interests in the common units of CyrusOne’s operating partnership, CyrusOne LP. CyrusOne LP units are exchangeable into common stock of CyrusOne on a one-to-one basis, or cash at the fair value of a share of CyrusOne common stock, at the option of CyrusOne, commencing on January 17, 2014. We are a limited partner in CyrusOne LP, which is controlled by CyrusOne GP, and we own less than 10% of the common stock of CyrusOne. Although we effectively own 69% of the economic interests of CyrusOne through our ownership of its common stock and partnership units of CyrusOne LP, we no longer control its operations.
Pursuant to a contribution agreement ("Contribution Agreement") by and between certain Cincinnati Bell subsidiaries, CyrusOne, and CyrusOne LP, we contributed our interests in certain properties which included approximately 932,000 square feet of data center colocation space spread across 24 data center facilities in the Midwest, Texas, Arizona, England, and Singapore, in exchange for limited partnership interests in CyrusOne LP which are exchangeable into shares of common stock of CyrusOne. The operations of CyrusOne, a qualified real estate investment trust (REIT) entity, will primarily be conducted by CyrusOne LP.
The Contribution Agreements provide that CyrusOne LP assumed or succeeded to all of the Contributors' rights, liabilities and obligations with respect to the property entity, properties interests and assets contributed. The Contribution Agreements contain customary representations and warranties by the Contributors with respect to the property entity, property interests and assets contributed to CyrusOne LP, such as title to any owned property, compliance with laws (including environmental laws), enforceability of certain material contracts and leases and certain other matters. In the event of a breach of such representations and warranties, the Contributors will indemnify CyrusOne LP for any resulting losses, subject to certain limitations.
The representations and warranties made by the contributors will survive for a period of one year after the closing of the contribution transactions which occurred on November 20, 2012. In the event the CyrusOne LP does not become aware of a breach until after such period, or if CyrusOne LP otherwise fails to assert a claim prior to the end of such period, CyrusOne LP will have no further recourse against the Contributors.
With effect from January 24, 2013, we will no longer consolidate the results of operations, financial positions or cash flows of CyrusOne, CyrusOne LP or any of their subsidiaries. Our investment in CyrusOne will be accounted for as an available-for-sale security on our balance sheet and any changes in CyrusOne's stock price will be recognized in our other comprehensive income. Our investment in CyrusOne LP will be accounted for as an equity method investment, and we will recognize our share of CyrusOne LP's net income as income from equity method investments.