CINCINNATI-Convergys Corp. has filed paperwork for an initial public offering of stock expected to raise $435 million.
Convergys, a wholly owned subsidiary of Cincinnati Bell Inc., filed a registration statement with the Securities and Exchange Commission for the IPO. The joint lead managers of the offering are Morgan Stanley Dean Witter and Salomon Smith Barney.
Convergys is a new holding company for two of Cincinnati Bell’s operating subsidiaries, Cincinnati Bell Information Systems Inc. and Matrixx Marketing Inc. Convergys also will hold Cincinnati Bell’s minority interest in a partnership venture with Ameritech that serves central and southwestern Ohio and northern Kentucky.
Cincinnati Bell said it plans to use proceeds from the offering to repay a portion of its debt that funded the acquisition of Transtech from AT&T Corp. in February. Convergys will be allocated $730 million of Cincinnati Bell’s $1.1 billion in debt incurred as of March 31, the company said.
Cincinnati Bell previously announced it expects a tax-free distribution of the remaining Convergys shares to Cincinnati Bell shareholders within six months of the IPO.
Convergys plans to list its common shares on the New York Stock Exchange under the symbol “CVG.”
