CyrusOne, the data center subsidiary of Cincinnati Bell (NYSE: CBB), filed papers Wednesday with the Securities and Exchange Commission (SEC) for a proposed initial public offering.
Part of the proceeds from the IPO will be used to repay CyrusOne's outstanding debts to Cincinnati Bell, the filing indicates.
The impending IPO should be of no surprise.
During the company's Q1 2012 earnings call in May, Jack Cassidy, Cincinnati Bell's CEO, said that it would file with the U.S. Securities and Exchange Commission "should those market conditions be favorable."
Data-center services were a major driver of growth in its Q2 earnings mix, increasing 20 percent, or $9 million, year-over-year, to $54 million, amid an uptick in data-center space sales over the past year.
Cincinnati Bell acquired CyrusOne in 2010 for $525 million, and has run it separate business since that time.
CyrusOne has expanded both its domestic and international data center presence, expanding in key U.S. markets, entering the European market in London last May, and opening a new data center in Singapore.
- see the release
Cincinnati Bell to bring ESPN to its broadband base
Cyrus One ups sales force to deal with growing customer demand
Cincinnati Bell's 21% data center growth drives plans for CyrusOne IPO
Cincinnati Bell plans IPO for data center business
Cincinnati Bell puts cloud services into the hands of the SMB customer