CyrusOne Closes Houston Asset Divestiture

Rhea-AI Summary

CyrusOne Inc. has completed the sale of its four Houston data center assets to DataBank Holdings for approximately $670 million, with a lease agreement for the Houston West III shell to support a hyperscale customer. This transaction is part of CyrusOne's capital recycling initiative aimed at funding growth. The company continues to optimize its portfolio, focusing on redeploying capital into developments that provide substantial returns.

Positive

• Sale of Houston data center assets for approximately $670 million enhances liquidity.
• Capital recycling initiative supports future growth.
• Leasing Houston West III shell strengthens customer relationships.

Negative

• None.

DALLAS--(BUSINESS WIRE)-- CyrusOne Inc. (NASDAQ: CONE) (“CyrusOne”), a premier global data center REIT, today announced it has closed the previously announced sale of its four Houston data center assets to DataBank Holdings Ltd. (“DataBank”). Additionally, CyrusOne will lease the Houston West III shell to support a lease signed with a hyperscale customer. Total consideration for the transaction is approximately $670 million, subject to a net working capital adjustment.

“We are excited to close this transaction as we execute on our capital recycling initiative to fund our continued growth,” said David Ferdman, Interim President & Chief Executive Officer. “We are pleased to partner with the DataBank team, and this divestiture further optimizes our portfolio as we redeploy capital into accretive developments across core markets.”

DH Capital, LLC and DLA Piper LLP served as CyrusOne’s exclusive financial and legal advisors, respectively, on the transaction.

About CyrusOne

CyrusOne (NASDAQ: CONE) is a premier global REIT specializing in design, construction and operation of more than 50 high-performance data centers worldwide. The Company provides mission-critical facilities that ensure the continued operation of IT infrastructure for approximately 1,000 customers, including approximately 200 Fortune 1000 companies.

A leader in hybrid-cloud and multi-cloud deployments, CyrusOne offers colocation, hyperscale, and build-to-suit environments that help customers enhance the strategic connection of their essential data infrastructure and support achievement of sustainability goals. CyrusOne data centers offer world-class flexibility, enabling clients to modernize, simplify, and rapidly respond to changing demand. Combining exceptional financial strength with a broad global footprint, CyrusOne provides customers with long-term stability and strategic advantage at scale.

Safe Harbor Note

This press release contains forward-looking statements which are based on current expectations, forecasts and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. All statements, other than statements of historical facts, are statements that could be deemed forward-looking statements. These statements are based on current expectations, estimates, forecasts, and projections about the industries in which the Company operates and the beliefs and assumptions of the Company’s management. Words such as “expects,” “anticipates,” “predicts,” “projects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “continues,” “endeavors,” “strives,” “may,” variations of such words and similar expressions are intended to identify such forward-looking statements. In addition, any statements that refer to projections of the Company’s future financial performance, the Company’s anticipated growth and trends in the Company’s businesses, and other characterizations of future events or circumstances are forward-looking statements. Readers are cautioned these forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties, which could cause the Company’s actual results to differ materially and adversely from those reflected in the forward-looking statements. More information on these risks and uncertainties and other potential factors that could affect the Company’s business and financial results is included in CyrusOne’s filings with the U.S. Securities and Exchange Commission, including in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s most recently filed periodic reports on Form 10-K and Form 10-Q and subsequent filings. The Company disclaims any obligation other than as required by law to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors or for new information, data or methods, future events or other changes.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220302005076/en/

Investor Relations

Michael Schafer

Senior Vice President, Finance

972-350-0060

investorrelations@cyrusone.com

Source: CyrusOne

FAQ

What was the value of CyrusOne's recent asset sale?

CyrusOne sold its Houston data center assets for approximately $670 million.

Who purchased CyrusOne's Houston data centers?

DataBank Holdings Ltd. purchased CyrusOne's Houston data center assets.

What is the purpose of CyrusOne's capital recycling initiative?

The initiative aims to fund continued growth and optimize the company's asset portfolio.

How does the sale affect CyrusOne's operations?

The sale allows CyrusOne to redeploy capital into developments that enhance returns.

What is the significance of the lease with a hyperscale customer?

The lease of the Houston West III shell supports ongoing relationships with large-scale customers.