Delaware |
7370 |
84-3743013 | ||
(State or other jurisdiction of incorporation or organization) |
(Primary Standard Industrial Classification Code Number) |
(I.R.S. Employer Identification No.) |
Large accelerated filer |
☐ |
Accelerated filer |
☐ | |||
☒ |
Smaller reporting company |
|||||
Emerging growth company |
| ||||||||
Title of Each Class of Securities to be Registered |
Amount to be Registered |
Proposed Maximum Offering Price Per Share |
Proposed Maximum Aggregate Offering Price |
Amount of Registration Fee | ||||
Warrants |
8,576,940 |
$1.73(1) |
$14,838,106.20 |
$1,618.84 | ||||
Class A common stock, $0.0001 par value per share, underlying private warrants |
8,576,940 |
$11.50(2) |
$98,634,810.00 |
$10,761.06 | ||||
Class A common stock, $0.0001 par value per share |
151,732,178 |
$8.59(3) |
$1,303,379,409.02 |
$142,198.69 | ||||
Class A common stock, $0.0001 par value per share, underlying public warrants |
11,620,671 |
$11.50(2) |
$133,637,716.50 |
$14,579.87 | ||||
Total |
$169,158.46 | |||||||
| ||||||||
|
(1) |
Pursuant to Rule 457(c) under the Securities Act, and solely for the purpose of calculating the registration fee, the proposed maximum offering price per warrant is $1.73, which is the average of the high and low prices of the warrants on August 18, 2021 on the Nasdaq Global Select Market. |
(2) |
Calculated pursuant to Rule 457(g) under the Securities Act, based on the exercise price of the warrants. |
(3) |
Pursuant to Rule 457(c) under the Securities Act, and solely for the purpose of calculating the registration fee, the proposed maximum offering price per share is $8.59, which is the average of the high and low prices of the Class A common stock on August 18, 2021 on the Nasdaq Global Select Market. |
Clause |
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122 |
• | “Backstop Investors” are to investors in the maximum funding commitment by the forward purchasers of $100,000,000; |
• | “BC Partners” are to BC Partners LLP; |
• | “BC Stockholder” are to BCEC-SIS Holdings L.P.; |
• | “Business Combination” or “Transactions” are to the transactions consummated pursuant to the Merger Agreement; |
• | “Cyxtera Stockholder” are to SIS Holdings LP, a Delaware limited partnership; |
• | “DGCL” are to the General Corporation Law of the State of Delaware; |
• | “Exchange Act” are to the Securities Exchange Act of 1934, as amended; |
• | “forward purchase agreement” are to the agreement entered into on September 9, 2020 providing for the sale of SVAC Class A common stock and private placement warrants to the forward purchasers and their permitted transferees in a private placement that closed simultaneously with the closing of the Business Combination; |
• | “forward purchase shares” are to the shares of SVAC Class A common stock issued pursuant to the forward purchase agreement; |
• | “forward purchasers” are to those certain Starboard clients that entered into the forward purchase agreement; |
• | “founder shares” are to the shares of SVAC Class B common stock initially purchased by the Sponsor in a private placement prior to the Initial Public Offering, and the shares of Class A common stock issued upon the conversion thereof; |
• | “GAAP” are to U.S. generally accepted accounting principles; |
• | “Initial Public Offering” are to the SVAC initial public offering of units, which closed on September 14, 2020; |
• | “Medina Capital” and “Medina Stockholder” are to Medina Capital Fund II– SIS Holdco, L.P.; |
• | “Merger Agreement” are to the Agreement and Plan of Merger, dated as of February 21, 2021, by and among SVAC, Merger Sub 1, Merger Sub 2, Cyxtera and NewCo, as the same may be amended from time to time; |
• | “Merger Sub 1” are to Mundo Merger Sub 1, Inc., a Delaware corporation and wholly-owned subsidiary of SVAC; |
• | “Merger Sub 2” are to Mundo Merger Sub 2, LLC, a Delaware limited liability company and wholly-owned subsidiary of SVAC; |
• | “Merger Subs” are to, collectively, Merger Sub 1 and Merger Sub 2; |
• | “Nasdaq” are to the Nasdaq Stock Market LLC; |
• | “Nasdaq Listing Rules” are to the Listing Rules adopted by the Nasdaq Stock Market LLC, as the same may be amended from time to time; |
• | “PIPE Investment” are to the private placement of an aggregate of 25,000,000 shares of Class A common stock to the PIPE Investors, at a price of $10.00 per share, in connection with the Business Combination; |
• | “PIPE Investors” are to means the qualified institutional buyers and accredited investors participating in the PIPE Investment; |
• | “Securities Act” means the U.S. Securities Act of 1933, as amended; |
• | “Sponsor” are to SVAC Sponsor LLC, a Delaware limited liability company; |
• | “Starboard” are to Starboard Value LP, a Delaware limited partnership; |
• | “SVAC” are to Starboard Value Acquisition Corp., which was renamed “Cyxtera Technologies, Inc.” in connection with the closing of the Business Combination; |
• | “SVAC Public Stockholders” are to the public stockholders under SVAC. |
• | the impact of the COVID-19 pandemic on our business, results of operations and financial condition; |
• | our ability to realize the benefits of the Business Combination; |
• | the demand for data centers; |
• | failure of our physical infrastructure and its negative impact on our ability to provide services, or damage to customer infrastructure within our data centers; |
• | the impact of physical and electronic security breaches and cyber-attacks; |
• | adverse global economic conditions and credit market uncertainty; |
• | our ability to recruit or retain key executives and qualified personnel; |
• | our ability to enhance our future operating and financial results; |
• | compliance with laws and regulations applicable to our business; |
• | our ability to acquire and protect intellectual property; and |
• | our ability to successfully deploy the proceeds from the Business Combination. |
• | Global Footprint: |
• | Breadth of Offering: |
• | World-Class Platform: |
• | Operational Flexibility: |
• | Market Leadership: |
• | Continuous Innovation: |
• | The ongoing COVID-19 pandemic could have a negative effect on our business, results of operations and financial condition. |
• | Our business depends upon the demand for data centers. |
• | Our products and services have a long sales cycle that may harm our revenues and operating results. |
• | Any failure of our physical infrastructure, negative impact on our ability to provide services, or damage to customer infrastructure within our data centers, could lead to significant costs and disruptions that could reduce our revenue and harm our business reputation and financial results. |
• | We may be vulnerable to physical and electronic security breaches and cyber-attacks, which could disrupt our operations and have a material adverse effect on our financial performance and operating results. |
• | Adverse global economic conditions and credit market uncertainty could adversely impact our business and financial condition. |
• | We may be impacted by disruptions associated with events beyond our control, such as war, acts of terror, political unrest, public health concerns, labor disputes or natural disasters. |
• | Our international operations expose it to regulatory, currency, legal, tax and other risks distinct from those faced by us in the United States. |
• | Inadequate or inaccurate external and internal information, including budget and planning data, could lead to inaccurate financial forecasts and inappropriate financial decisions. |
• | We may not be able to compete successfully against current and future competitors. |
• | Our operating results may fluctuate. |
• | We have incurred substantial losses in the past and may incur additional losses in the future. Our net losses for the six months ended June 30, 2021 and the years ended December 31, 2020 and December 31, 2019 were $145.6 million, $122.8 million and $514.2 million, respectively. |
• | We lease space in several locations under long-term non-cancellable lease agreements and the non-renewal or loss of such leases, or the continuing obligations under such leases in the event of a loss of customers or customer revenues, could have a material adverse effect. |
• | Environmental regulations may impose new or unexpected costs on us. |
• | Our substantial debt could adversely affect our cash flows and limit our flexibility to raise additional capital. |
• | Our substantial debt could adversely affect our cash flows and limit our flexibility to raise additional capital. As of June 30, 2021, we had $963.6 million and $1,298.7 million in capital lease obligations and long-term debt outstanding under our Senior Secured Credit Facilities (as defined below), respectively. |
• | the option to present only two years of audited financial statements and only two years of related “ Management’s Discussion and Analysis of Financial Condition and Results of Operations |
• | not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act of 2002, as amended (the “Sarbanes-Oxley Act”); |
• | not being required to comply with any requirement that may be adopted by the Public Company Accounting Oversight Board regarding mandatory audit firm rotation or a supplement to the auditor’s report providing additional information about the audit and the financial statements (i.e., an auditor discussion and analysis); |
• | reduced disclosure obligations regarding executive compensation in our periodic reports, proxy statements and registration statements; and |
• | exemptions from the requirements of holding a nonbinding advisory vote of stockholders on executive compensation, stockholder approval of any golden parachute payments not previously approved and having to disclose the ratio of the compensation of our chief executive officer to the median compensation of our employees. |
• | human error; |
• | equipment failure; |
• | availability of parts and materials needed to appropriately maintain our infrastructure; |
• | physical, electronic and cyber security breaches; |
• | fire, earthquake, hurricane, flood, tornado and other natural disasters; |
• | extreme temperatures; |
• | water damage; |
• | fiber cuts; |
• | power loss, water loss and or loss of other local utilities; |
• | terrorist acts; |
• | sabotage and vandalism; |
• | civil disorder; and |
• | global pandemics or health emergencies, such as COVID-19. |
• | Our limited knowledge of and relationships with customers, contractors, suppliers or other parties in these markets; |
• | protectionist laws and business practices favoring local competition; |
• | political and economic instability; |
• | complexity and costs associated with managing international operations; |
• | difficulty in hiring qualified management, sales and other personnel and service providers in these markets; |
• | differing employment practices and labor issues; |
• | compliance with evolving governmental regulation with which we have limited experience; |
• | compliance with economic and trade sanctions enforced by the Office of Foreign Assets Control of the U.S. Department of Treasury; |
• | Our ability to obtain, transfer or maintain licenses required by governmental entities with respect to our business; |
• | unexpected changes in regulatory, tax and political environments such as the United Kingdom’s withdrawal from the European Union (“Brexit”), and trade wars; |
• | exposure to increased taxation, confiscation or expropriation and the risk of forced nationalization; |
• | fluctuations in currency exchange rates; |
• | currency transfer restrictions and limitations on our ability to distribute cash earned in foreign jurisdictions to the United States; |
• | difficulty in enforcing agreements in non-U.S. jurisdictions, including in the event of a default by one or more of our customers, suppliers or contractors; |
• | compliance with anti-bribery, corruption and export control laws; and |
• | difficulties in managing across cultures and in foreign languages. |
• | fluctuations of foreign currencies in the markets in which we operate that may impact the value of our foreign revenue and profitability; |
• | demand for space, power and solutions at our data centers; |
• | changes in general economic conditions, such as an economic downturn, or specific market conditions in the internet and data communications and broader technology industries, all of which may have an impact on our customer base; |
• | the duration of the sales cycle for our offerings; |
• | additions and changes in product offerings and our ability to ramp up and integrate new products; |
• | the financial condition and credit risk of our customers; |
• | the provision of customer discounts and credits; |
• | the mix of current and proposed products and offerings and the gross margins associated with our products and offerings; |
• | the timing required for future data centers to open or become fully utilized; |
• | competition in the markets in which we operate; |
• | conditions related to international operations; |
• | increasing repair and maintenance expenses in connection with aging data centers; |
• | changes in rent expense and shared operating costs in connection with our leases, which are commonly referred to as common area maintenance expenses, as we amend, extend or renew our data center leases in the future; |
• | the timing and magnitude of other operating expenses; |
• | the cost and availability of adequate public utilities, including electricity; |
• | implementation of our employee stock-based compensation practices as a newly public company and changes in employee stock-based compensation; |
• | overall inflation; |
• | increasing interest expense due to any increases in interest rates and/or potential additional debt financings; |
• | changes in tax planning strategies or failure to realize anticipated benefits from such strategies; and |
• | changes in income tax benefit or expense. |
• | require us to dedicate a substantial portion of our cash flow from operations to make interest and principal payments on our debt and, reducing the availability of our cash flow to fund future capital expenditures, expansion efforts, working capital and other general corporate requirements; |
• | increase the likelihood of negative outlook from credit rating agencies, or of a downgrade to our current rating; |
• | make it more difficult for us to satisfy our obligations under our various debt instruments; |
• | increase our cost of borrowing and limit our ability to access additional debt to fund future growth or maintain adequate liquidity; |
• | increase our vulnerability to general adverse economic and industry conditions and adverse changes in governmental regulations; |
• | limit our flexibility in planning for, or reacting to, changes in our business and industry; |
• | limit our operating flexibility through covenants with which we must comply; and |
• | make us more vulnerable to increases in interest rates because of the variable interest rates on some of our borrowings. |
• | limitations on convening special stockholder meetings, which make it difficult for our stockholders to adopt desired governance changes; |
• | a forum selection clause, which means certain litigation against us can only be brought in Delaware; |
• | the authorization of undesignated preferred stock, the terms of which may be established and shares of which may be issued without further action by our stockholders; and |
• | advance notice procedures, which apply for stockholders to nominate candidates for election as directors or to bring matters before an annual meeting of stockholders. |
• | not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act; |
• | not being required to comply with any requirement that may be adopted by the Public Company Accounting Oversight Board regarding mandatory audit firm rotation or a supplement to the auditor’s report providing additional information about the audit and the financial statements (i.e., an auditor discussion and analysis); |
• | reduced disclosure obligations regarding executive compensation in our periodic reports, proxy statements and registration statements; and |
• | exemptions from the requirements of holding a nonbinding advisory vote of stockholders on executive compensation, stockholder approval of any golden parachute payments not previously approved and having to disclose the ratio of the compensation of our chief executive officer to the median compensation of our employees. |
• | the impact of the COVID-19 pandemic on our financial condition and the results of operations; |
• | our operating and financial performance and prospects; |
• | our quarterly or annual earnings or those of other companies in our industry compared to market expectations; |
• | our former status as a Special Purpose Acquisition Company (“SPAC”); |
• | conditions that impact demand for our products; |
• | future announcements concerning our business, our customers’ businesses or our competitors’ businesses; |
• | the public’s reaction to our press releases, other public announcements and filings with the SEC; |
• | the size of our public float; |
• | coverage by or changes in financial estimates by securities analysts or failure to meet their expectations; |
• | market and industry perception of our success, or lack thereof, in pursuing our growth strategy; |
• | strategic actions by us or our competitors, such as acquisitions or restructurings; |
• | changes in laws or regulations that adversely affect our industry or us; |
• | changes in accounting standards, policies, guidance, interpretations or principles; |
• | changes in senior management or key personnel; |
• | issuances, exchanges or sales, or expected issuances, exchanges or sales, of our capital stock; |
• | changes in our dividend policy; |
• | adverse resolution of new or pending litigation against us; and |
• | changes in general market, economic and political conditions in the United States and global economies or financial markets, including those resulting from natural disasters, terrorist attacks, acts of war and responses to such events. |
• | Cyxtera’s ultimate stockholders prior to the Business Combination collectively have the majority and greatest voting interest in the combined entity after giving effect to the Business Combination with approximately 64% voting interest; |
• | after giving effect to the proposed Business Combination, the largest individual minority stockholder of the combined entity is an existing ultimate stockholder of Cyxtera; |
• | Cyxtera’s existing directors and individuals designated by existing Cyxtera stockholders represent the majority of the combined company’s board of directors since pursuant to the Merger Agreement, Cyxtera has the right to designate certain initial members of the board of directors of the post-combination company immediately after giving effect to the Transactions; |
• | Cyxtera’s senior management is the senior management of the combined company; |
• | Cyxtera is the larger entity based on total assets, historical revenue and operating results, and total number of employees; and |
• | Cyxtera’s operations prior to the Business Combination comprise the only ongoing operations of the combined entity. |
Total shares transferred at Closing (a) |
106,100,000 | |||
Value per share (b) |
$ | 10.00 | ||
|
|
|||
Total Share Consideration |
$ | 1,061,000,000 | ||
|
|
(a) | In addition to the 106.1 million consideration shares, the Cyxtera Stockholder also was assigned the right to purchase up to 3.75 million shares of Class A common stock at an exercise price of $10.00 a share during the six month period beginning on the first business day following the close of the Business Combination. |
(b) | Share consideration is calculated using a $10.00 reference price. The closing share price on the date of the consummation of the Merger Transaction was $9.55. As the Transaction was accounted for as a reverse recapitalization, the value per share is disclosed for informational purposes only in order to indicate the fair value of shares transferred. |
Ownership |
Shares Outstanding |
% |
||||||
SVAC Public Stockholders |
14,246,562 | 8.6 | % | |||||
SVAC Sponsor, management and board |
10,105,863 | 6.1 | % | |||||
Cyxtera Stockholder |
106,100,000 | 63.9 | % | |||||
PIPE Investors |
25,000,000 | 15.1 | % | |||||
Backstop Investors |
10,526,315 | 6.3 | % | |||||
|
|
|||||||
Total Shares at Closing (a) |
165,978,740 |
|||||||
|
|
(a) | Excludes 27.7 million unissued shares, of which 20.2 million is reserved for outstanding warrants and 7.5 million reserved for optional shares rights. |
Historical |
||||||||||||||||||
As of June 30, 2021 |
As of June 30, 2021 |
|||||||||||||||||
SVAC |
Cyxtera |
Transaction Accounting Adjustments (Note 2) |
Pro Forma Combined |
|||||||||||||||
Assets: |
||||||||||||||||||
Current assets: |
||||||||||||||||||
Cash |
$ | 1.4 | $ | 59.5 | $ | 404.5 | (A) |
$ | 62.0 | |||||||||
(54.7) | (B) |
|||||||||||||||||
250.0 | (C) |
|||||||||||||||||
(0.4) | (D) |
|||||||||||||||||
(436.4) | (J) |
|||||||||||||||||
100.0 | (L) |
|||||||||||||||||
(261.9) | (M) |
|||||||||||||||||
Accounts receivable, net |
— | 16.3 | 16.3 | |||||||||||||||
Prepaid and other current assets |
0.2 | 38.6 | (0.2) | (E) |
38.6 | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Total current assets |
1.6 | 114.4 | 0.9 | 116.9 | ||||||||||||||
Property and equipment, net |
— | 1,524.3 | 1,524.3 | |||||||||||||||
Goodwill |
— | 764.0 | 764.0 | |||||||||||||||
Intangible assets, net |
— | 553.1 | 553.1 | |||||||||||||||
Other assets |
— | 24.4 | (7.3) | (B) |
17.1 | |||||||||||||
Investments held in trust account |
404.5 | — | (404.5) | (A) |
— | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Total assets |
$ |
406.1 |
$ |
2,980.2 |
$ |
(410.9) |
$ |
2,975.4 |
||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Liabilities and stockholders’ equity: |
||||||||||||||||||
Current liabilities: |
||||||||||||||||||
Accounts payable |
$ | 0.4 | $ | 46.8 | $ | (1.7 | ) | (B) |
$ | 45.4 | ||||||||
(0.1) | (D) |
|||||||||||||||||
Accrued expenses |
1.8 | 72.7 | (4.4) | (B) |
66.4 | |||||||||||||
(0.3) | (D) |
|||||||||||||||||
(3.4) | (J) |
|||||||||||||||||
Franchise tax payable |
— | — | — | (D) |
— | |||||||||||||
Current portion of long-term debt, capital leases and other financing obligations |
— | 53.3 | 53.3 | |||||||||||||||
Deferred revenue |
— | 59.9 | 59.9 | |||||||||||||||
Other current liabilities |
— | 7.6 | 7.6 | |||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Total current liabilities |
2.2 | 240.3 | (9.9) | 232.6 | ||||||||||||||
Deferred legal fees |
0.3 | — | (0.3) | (B) |
— | |||||||||||||
Deferred underwriting commissions in connection with the initial public offering |
18.2 | — | (18.2) | (B) |
— | |||||||||||||
Derivative liabilities |
45.6 | — | (3.0) | (N) |
43.0 | |||||||||||||
— | (O) |
|||||||||||||||||
0.4 | (P) |
|||||||||||||||||
Long-term debt, net of current portion |
— | 1,289.6 | (433.0) | (J) |
862.0 | |||||||||||||
5.4 | (K) |
|||||||||||||||||
Capital leases and other financing obligations, net of current portion |
— | 919.4 | 919.4 |
Historical |
||||||||||||||||||
As of June 30, 2021 |
As of June 30, 2021 |
|||||||||||||||||
SVAC |
Cyxtera |
Transaction Accounting Adjustments (Note 2) |
Pro Forma Combined |
|||||||||||||||
Deferred income taxes |
— | 52.0 | 52.0 | |||||||||||||||
Other liabilities |
— | 159.3 | 159.3 | |||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Total liabilities |
66.3 | 2,660.6 | (458.6) | 2,268.3 | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Commitments and contingencies |
||||||||||||||||||
Class A common stock, $0.0001 par value; shares subject to possible redemption |
334.8 | — | (334.8) | (F) |
— | |||||||||||||
Stockholders’ equity: |
||||||||||||||||||
Common shares, $0.01 par value; 1,000 shares authorized; 0.88 of a share issued and outstanding as of June 30, 2021 |
— | — | — | (G) |
— | |||||||||||||
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; none issued and outstanding |
— | — | — | |||||||||||||||
Class A common stock, $0.0001 par value; 200,000,000 shares authorized; 6,944,957 shares issued and outstanding (excluding 33,478,496 shares subject to possible redemption) |
— | — | — | (F) |
— | |||||||||||||
Class B common stock, $0.0001 par value; 20,000,000 shares authorized; 10,105,863 shares issued and outstanding |
— | — | — | (H) |
— | |||||||||||||
Class A Common stock (New) |
— | — | — | (C) |
— | |||||||||||||
— | (F) |
|||||||||||||||||
— | (G) |
|||||||||||||||||
— | (H) |
|||||||||||||||||
— | (L) |
|||||||||||||||||
Additional paid-in capital |
33.4 | 1,410.3 | (31.1) | (B) |
1,803.2 | |||||||||||||
250.0 | (C) |
|||||||||||||||||
334.8 | (F) |
|||||||||||||||||
— | (G) |
|||||||||||||||||
(34.9) | (I) |
|||||||||||||||||
100.0 | (L) |
|||||||||||||||||
(261.9) | (M) |
|||||||||||||||||
3.0 | (N) |
|||||||||||||||||
— | (O) |
|||||||||||||||||
(0.4) | (P) |
|||||||||||||||||
Accumulated other comprehensive income |
— | 18.4 | 18.4 | |||||||||||||||
Accumulated deficit |
(28.4) | (1,109.1) | (6.3) | (B) |
(1,114.5) | |||||||||||||
(0.2) | (E) |
|||||||||||||||||
34.9 | (I) |
|||||||||||||||||
(5.4) | (K) |
|||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Total stockholders’ equity |
5.0 | 319.6 | 382.5 | 707.1 | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Total liabilities and stockholders’ equity |
$ |
406.1 |
$ |
2,980.2 |
$ |
(410.9) |
$ |
2,975.4 |
||||||||||
|
|
|
|
|
|
|
|
Historical |
||||||||||||||||||
Six Months Ended June 30, 2021 |
Six Months Ended June 30, 2021 |
|||||||||||||||||
SVAC |
Cyxtera |
Transaction Accounting Adjustments (Note 2) |
Pro Forma Combined |
|||||||||||||||
Revenues |
$ | — | $ | 348.3 | $ | 348.3 | ||||||||||||
Operating costs and expenses: |
||||||||||||||||||
Cost of revenues, excluding depreciation and amortization |
— | 193.9 | 193.9 | |||||||||||||||
Selling, general and administrative expenses |
3.0 | 50.5 | $ | — | (II) |
53.5 | ||||||||||||
Franchise tax expense and administrative expenses – related party |
0.2 | — | (0.2) | (AA) |
— | |||||||||||||
Depreciation and amortization |
— | 121.1 | 121.1 | |||||||||||||||
Restructuring, impairment, site closures and related costs |
— | 67.0 | 67.0 | |||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Total operating cost and expenses |
3.2 | 432.5 | (0.2) | 435.5 | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
(Loss) income from operations |
(3.2) | (84.2) | 0.2 | (87.2) | ||||||||||||||
Interest expense, net |
— | (86.3) | 15.1 | (CC) |
(70.2) | |||||||||||||
1.0 | (HH) |
|||||||||||||||||
Other expenses, net |
— | (0.9) | (0.9) | |||||||||||||||
Change in fair value of derivative liabilities |
1.8 | — | (3.9) | (FF) |
(2.3) | |||||||||||||
(0.2) | (GG) |
|||||||||||||||||
Net gain from investments held in Trust Account |
0.1 | — | (0.1) | (BB) |
— | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Income (loss) from operations before income taxes |
(1.3) |
(171.4) |
12.1 |
(160.6) |
||||||||||||||
Income tax benefit (expense) |
— | 25.8 | (4.0) | (EE) |
21.8 | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Net (loss) income |
$ |
(1.3 |
) |
$ |
(145.6) |
$ |
8.1 |
$ |
(138.8) |
|||||||||
|
|
|
|
|
|
|
|
|||||||||||
Weighted average shares outstanding of Class A common stock |
40,423,453 | 165,978,740 | ||||||||||||||||
|
|
|
|
|||||||||||||||
Basic and diluted net loss per share |
$ | — | $ | (0.84) | ||||||||||||||
|
|
|
|
|||||||||||||||
Weighted average shares outstanding of Class B common stock |
10,105,853 | |||||||||||||||||
|
|
|||||||||||||||||
Basic and diluted net loss per share |
$ | (0.13 | ) | |||||||||||||||
|
|
Historical |
||||||||||||||||||
Year Ended |
Year Ended |
|||||||||||||||||
December 31, 2020 |
December 31, 2020 |
|||||||||||||||||
SVAC |
Cyxtera |
Transaction Accounting Adjustments (Note 2) |
Pro Forma Combined |
|||||||||||||||
Revenues |
$ | — | $ | 690.5 | $ | 690.5 | ||||||||||||
Operating costs and expenses: |
||||||||||||||||||
Cost of revenues, excluding depreciation and amortization |
— | 390.5 | 390.5 | |||||||||||||||
Selling, general and administrative expenses |
0.2 | 115.5 | (0.2 | ) | (AA) |
115.5 | ||||||||||||
Franchise tax expense |
0.2 | — | (0.2 | ) | (AA) |
— | ||||||||||||
Depreciation and amortization |
— | 231.8 | 231.8 | |||||||||||||||
(Recovery) Impairment of notes receivable from affiliate |
— | (97.7 | ) | (97.7 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Total operating cost and expenses |
0.4 | 640.1 | (0.4 | ) | 640.1 | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
(Loss) income from continuing operations |
(0.4 | ) | 50.4 | 0.4 | 50.4 | |||||||||||||
Interest expense, net |
— | (169.4 | ) | 31.6 | (CC) |
(143.9 | ) | |||||||||||
(6.1 | ) | (DD) |
||||||||||||||||
Other expenses, net |
— | (0.3 | ) | (0.3 | ) | |||||||||||||
Change in fair value of derivative liabilities |
(26.3 | ) | — | 6.8 | (FF) |
(19.7 | ) | |||||||||||
(0.2 | ) | (GG) |
||||||||||||||||
Offering costs associated with derivative liabilities |
(0.6 | ) | — | (0.6 | ) | |||||||||||||
Net gain from investments held in Trust Account |
0.2 | — | (0.2 | ) | (BB) |
— | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Loss from operations before income taxes |
(27.1 |
) |
(119.3 |
) |
32.3 |
(114.1 |
) | |||||||||||
Income tax expense |
— | (3.5 | ) | (6.2 | ) | (EE) |
(9.7 | ) | ||||||||||
|
|
|
|
|
|
|
|
|||||||||||
Net loss |
$ |
(27.1 |
) |
$ |
(122.8 |
) |
$ |
26.1 |
$ |
(123.8 |
) | |||||||
|
|
|
|
|
|
|
|
|||||||||||
Weighted average shares outstanding of Class A common stock |
40,058,214 | 165,978,740 | ||||||||||||||||
|
|
|
|
|||||||||||||||
Basic and diluted net loss per share |
$ | — | $ | (0.75 | ) | |||||||||||||
|
|
|
|
|||||||||||||||
Weighted average shares outstanding of Class B common stock |
9,302,148 | |||||||||||||||||
|
|
|||||||||||||||||
Basic and diluted net income per share |
$ | (2.91 | ) | |||||||||||||||
|
|
• | SVAC’s audited consolidated balance sheet as of December 31, 2020 and the audited consolidated statement of operations for the year ended December 31, 2020 and the related notes as of and for the year ended December 31, 2020 found elsewhere in this prospectus; |
• | Cyxtera’s audited consolidated balance sheet as of December 31, 2020 and the audited consolidated statement of operations for the year ended December 31, 2020 and the related notes for the year ended December 31, 2020 found elsewhere in this prospectus; |
• | SVAC’s unaudited condensed consolidated balance sheet as of June 30, 2021 and the unaudited condensed consolidated statement of operations for the six months ended June 30, 2021 and the related notes for the six months ended June 30, 2021 found elsewhere in this prospectus; and |
• | Cyxtera’s unaudited condensed consolidated balance sheet as of June 30, 2021 and the unaudited condensed consolidated statement of operations for the six months ended June 30, 2021 and the related notes for the six months ended June 30, 2021 found elsewhere in this prospectus. |
(in millions except share and per share data) |
Six Months Ended June 30, 2021 |
Year Ended December 31, 2020 |
||||||
Pro forma net loss |
$ | (138.8 | ) | $ | (123.8 | ) | ||
Pro forma weighted average shares outstanding - basic and diluted |
165,978,740 | 165,978,740 | ||||||
Pro forma net loss per share - basic and diluted |
$ | (0.84 | ) | $ | (0.75 | ) | ||
SVAC Public Stockholders |
14,246,562 | 14,246,562 | ||||||
SVAC Sponsor, management and board |
10,105,863 | 10,105,863 | ||||||
Cyxtera Stockholder |
106,100,000 | 106,100,000 | ||||||
PIPE Investors |
25,000,000 | 25,000,000 | ||||||
Forward Purchasers |
10,526,315 | 10,526,315 | ||||||
|
|
|
|
|||||
Pro forma weighted average shares outstanding - basic and diluted (1) |
165,978,740 |
165,978,740 |
||||||
|
|
|
|
(1) |
For the purposes of applying the if-converted method for calculating diluted earnings per share, it was assumed that all outstanding warrants were exchanged for shares of Class A common stock. However, since this results in antidilution, the effect of such exchange was not included in the calculation of diluted loss per |
share. Class A common stock underlying the warrants are 20.2 million shares. In addition, in connection with the Optional Share Purchase Agreement, there are 7.5 million of options for the forward purchasers to purchase additional common equity at $10.00 per share after the close of the Business Combination. These antidilutive options have been excluded from the calculation of diluted loss per share. |
• | Recurring and non-recurring revenues; |
• | Bookings; and |
• | Churn. |
Three Months Ended June 30 |
Six Months Ended June 30, |
Years Ended December 31, |
||||||||||||||||||||||||||
2021 |
2020 |
2021 |
2020 |
2020 |
2019 |
2018 |
||||||||||||||||||||||
Revenues |
||||||||||||||||||||||||||||
Recurring revenue |
$ | 167.3 | $ | 165.1 | $ | 332.0 | $ | 330.0 | $ | 657.4 | $ | 648.6 | $ | 691.8 | ||||||||||||||
Non-recurring revenues |
8.1 | 8.1 | 16.3 | 15.7 | 33.1 | 30.0 | 11.5 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total |
$ |
175.4 |
|
$ |
173.2 |
|
$ |
348.3 |
|
$ |
345.7 |
|
$ |
690.5 |
|
$ |
678.6 |
|
$ |
703.3 |
| |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Bookings |
$ | 2.8 | $ | 1.7 | $ | 5.1 | $ | 3.3 | $ | 6.9 | $ | 4.9 | $ | 6.1 | ||||||||||||||
Churn |
$ | 1.5 | $ | 2.1 | $ | 3.3 | $ | 3.2 | $ | 6.9 | $ | 7.0 | $ | 6.0 |
Three Months Ended June 30, |
|
|
||||||||||||||
2021 |
2020 |
$ Change |
% Change |
|||||||||||||
Revenues |
$ | 175.4 | $ | 173.2 | $ | 2.2 | 1.3 | % | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Operating costs and expenses: |
||||||||||||||||
Cost of revenues, excluding depreciation and amortization |
95.5 | 94.1 | 1.4 | 1 | % | |||||||||||
Selling, general and administrative expenses |
22.9 | 25.8 | (2.9 | ) | -11 | % | ||||||||||
Depreciation and amortization |
60.5 | 57.9 | 2.6 | 4 | % | |||||||||||
Restructuring, impairment, site closures and related costs |
58.9 | — | 58.9 | nm | ||||||||||||
Impairment of notes receivable and other amounts due from affiliate |
— | 2.1 | (2.1 | ) | -100 | % | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total operating costs and expenses |
237.8 | 179.9 | 57.9 | 32 | % | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Loss from operations |
(62.4 | ) | (6.7 | ) | (55.7 | ) | 831 | % | ||||||||
Interest expense, net |
(43.1 | ) | (42.1 | ) | (1.0 | ) | 2 | % | ||||||||
Other expenses, net |
(0.4 | ) | (0.4 | ) | — | 0 | % | |||||||||
|
|
|
|
|
|
|
|
|||||||||
Loss from operations before income taxes |
(105.9 | ) | (49.2 | ) | (56.7 | ) | 115 | % | ||||||||
Income tax benefit (expense) |
12.9 | (6.3 | ) | 19.2 | -305 | % | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net loss |
$ | (93.0 | ) | $ | (55.5 | ) | $ | (37.5 | ) | 68 | % | |||||
|
|
|
|
|
|
|
|
Six Months Ended June 30, |
|
|
||||||||||||||
2021 |
2020 |
$ Change |
% Change |
|||||||||||||
Revenues |
$ | 348.3 | $ | 345.7 | $ | 2.6 | 0.8 | % | ||||||||
Operating costs and expenses: |
||||||||||||||||
Cost of revenues, excluding depreciation and amortization |
193.9 | 190.0 | 3.9 | 2 | % | |||||||||||
Selling, general and administrative expenses |
50.5 | 56.9 | (6.4 | ) | -11 | % | ||||||||||
Depreciation and amortization |
121.1 | 114.9 | 6.2 | 5 | % | |||||||||||
Restructuring, impairment, site closures and related costs |
67.0 | — | 67.0 | nm | ||||||||||||
Impairment of notes receivable and other amounts due from affiliate |
— | 8.8 | (8.8 | ) | -100 | % | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total operating costs and expenses |
432.5 | 370.6 | 61.9 | 17 | % | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Loss from operations |
(84.2 | ) | (24.9 | ) | (59.3 | ) | 238 | % | ||||||||
Interest expense, net |
(86.3 | ) | (85.4 | ) | (0.9 | ) | 1 | % | ||||||||
Other expenses, net |
(0.9 | ) | (0.7 | ) | (0.2 | ) | 29 | % | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Loss from operations before income taxes |
(171.4 | ) | (111.0 | ) | (60.4 | ) | 54 | % | ||||||||
Income tax benefit |
25.8 | 8.1 | 17.7 | 219 | % | |||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net loss |
$ | (145.6 | ) | $ | (102.9 | ) | $ | (42.7 | ) | 41 | % | |||||
|
|
|
|
|
|
|
|
2020 |
2019 |
$ Change |
% Change |
|||||||||||||
Revenues |
$ | 690.5 | $ | 678.6 | $ | 11.9 | 2 | % | ||||||||
|
|
|
|
|
|
|||||||||||
Operating costs and expenses: |
||||||||||||||||
Cost of revenues, excluding depreciation and amortization |
390.5 | 405.8 | (15.3 | ) | (4 | )% | ||||||||||
Selling, general and administrative expenses |
115.5 | 146.5 | (31.0 | ) | (21 | )% | ||||||||||
Depreciation and amortization |
231.8 | 219.8 | 12.0 | 5 | % | |||||||||||
(Recovery) impairment of notes receivable from affiliate |
(97.7 | ) | 127.7 | (225.4 | ) | (177 | )% | |||||||||
Loss on asset sales |
— | 6.1 | (6.1 | ) | (100 | )% | ||||||||||
|
|
|
|
|
|
|||||||||||
Total operating costs and expenses |
640.1 | 905.9 | (265.8 | ) | (29 | )% | ||||||||||
|
|
|
|
|
|
|||||||||||
Income (loss) from continuing operations before income taxes |
50.4 | (227.3 | ) | 277.7 | (122 | )% | ||||||||||
Interest expense, net |
(169.4 | ) | (152.7 | ) | (16.7 | ) | 11 | % | ||||||||
|
|
|
|
|
|
|||||||||||
Other expenses, net |
(0.3 | ) | (0.9 | ) | 0.6 | (67 | )% | |||||||||
Loss from continuing operations before income taxes |
(119.3 | ) | (380.9 | ) | 261.6 | (69 | )% | |||||||||
Income tax (expense) benefit |
(3.5 | ) | 85.9 | (89.4 | ) | (104 | )% | |||||||||
|
|
|
|
|
|
|||||||||||
Net loss from continuing operations |
(122.8 | ) | (295.0 | ) | 172.2 | (58 | )% | |||||||||
|
|
|
|
|
|
|||||||||||
Net loss from discontinued operations, net of tax |
— | (219.2 | ) | 219.2 | (100 | )% | ||||||||||
|
|
|
|
|
|
|||||||||||
Net loss |
$ | (122.8 | ) | $ | (514.2 | ) | $ | 391.4 | (76 | )% | ||||||
|
|
|
|
|
|
2019 |
2018 |
$ Change |
% Change |
|||||||||||||
Revenues |
$ | 678.6 | $ | 703.3 | $ | (24.7 | ) | (4 | )% | |||||||
|
|
|
|
|
|
|||||||||||
Operating costs and expenses: |
||||||||||||||||
Cost of revenues, excluding depreciation and amortization |
405.8 | 415.7 | (9.9 | ) | (2 | )% | ||||||||||
Selling, general and administrative expenses |
146.5 | 131.3 | 15.2 | 12 | % | |||||||||||
Depreciation and amortization |
219.8 | 229.5 | (9.7 | ) | (4 | )% | ||||||||||
(Recovery) impairment of notes receivable from affiliate |
127.7 | — | 127.7 | nm | ||||||||||||
Loss on asset sales |
6.1 | — | 6.1 | nm | ||||||||||||
|
|
|
|
|
|
|||||||||||
Total operating costs and expenses |
905.9 | 776.5 | 129.4 | 17 | % | |||||||||||
|
|
|
|
|
|
|||||||||||
Loss from continuing operations before income taxes |
(227.3 | ) | (73.2 | ) | (154.1 | ) | 211 | % | ||||||||
Interest expense, net |
(152.7 | ) | (108.7 | ) | (44.0 | ) | 40 | % | ||||||||
Other expenses, net |
(0.9 | ) | (4.8 | ) | 3.9 | (81 | )% | |||||||||
|
|
|
|
|
|
|||||||||||
Loss from continuing operations before income taxes |
(380.9 | ) | (186.7 | ) | (194.2 | ) | 104 | % | ||||||||
Income tax benefit |
85.9 | 41.3 | 44.6 | 108 | % | |||||||||||
|
|
|
|
|
|
|||||||||||
Net loss from continuing operations |
(295.0 | ) | (145.4 | ) | (149.6 | ) | 103 | % | ||||||||
|
|
|
|
|
|
|||||||||||
Net loss from discontinued operations, net of tax |
(219.2 | ) | (46.4 | ) | (172.8 | ) | 372 | % | ||||||||
|
|
|
|
|
|
|||||||||||
Net loss |
$ | (514.2 | ) | $ | (191.8 | ) | $ | (322.4 | ) | 168 | % | |||||
|
|
|
|
|
|
Six Months Ended June 30, |
||||||||
2021 |
2020 |
|||||||
Net cash provided by operating activities |
$ | 6.3 | $ | 46.7 | ||||
|
|
|
|
|||||
Net cash provided by (used in) investing activities |
89.0 | (52.3 | ) | |||||
|
|
|
|
|||||
Net cash (used in) provided by financing activities |
(155.9 | ) | 74.9 | |||||
|
|
|
|
2021 |
2022 |
2023 |
2024 |
2025 |
Thereafter |
Total |
||||||||||||||||||||||
Long-term debt, excluding the Revolving Facility(1) |
$ | 9.1 | $ | 9.1 | $ | 9.1 | $ | 857.8 | $ | 310.0 | $ | — | $ | 1,195.1 | ||||||||||||||
Revolving Facility(2) |
— | 142.6 | — | — | — | — | 142.6 | |||||||||||||||||||||
Interest(3) |
67.2 | 63.8 | 61.9 | 37.8 | 8.6 | — | 239.3 | |||||||||||||||||||||
Capital leases and other financing obligations(4) |
146.2 | 131.8 | 123.2 | 113.4 | 115.9 | 2,294.8 | 2,925.3 | |||||||||||||||||||||
Operating leases(4) |
60.6 | 61.2 | 60.1 | 58.0 | 48.6 | 298.2 | 586.7 | |||||||||||||||||||||
Purchase obligations(5) |
3.5 | 3.1 | 1.4 | 0.2 | — | — | 8.2 | |||||||||||||||||||||
Asset retirement obligations(6) |
0.5 | 0.4 | 0.5 | 0.5 | 0.5 | 1.8 | 4.2 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
$287.1 |
$269.4 |
$256.2 |
$1,067.7 |
$483.6 |
$2,594.8 |
$4,958.5 |
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) | Represents aggregate maturities of long-term debt, excluding the Revolving Facility. As described in Note 17 of our unaudited financial statements found elsewhere in this prospectus, the Company repaid the $310.0 million due in 2025 in July 2021 upon consummation of the Business Combination. |
(2) | On May 7, 2021, certain of the lenders under the Revolving Facility entered into an amendment with us pursuant to which they agreed to extend the maturity date on a portion of the Revolving Facility from May 1, 2022 to November 1, 2023. Refer to Note 10 of our unaudited financial statements found elsewhere in this prospectus for additional details. |
(3) | Represents interest on our long-term debt included in (1) based on their approximate interest rates as of December 31, 2020, as well as the credit facility fee for the Revolving Facility. |
(4) | Represents lease payments under capital and operating lease arrangements, including reasonably assured renewal options. |
(5) | Represents unaccrued purchase commitments related to IT licenses, utilities and colocation operations. These amounts do not represent our entire anticipated purchases in the future but represent only those items for which the Company was contractually committed as of December 31, 2020. |
(6) | Represents future accretion expense on asset retirement obligations. |
2020 |
2019 |
|||||||||||||||
Carrying value |
Fair value |
Carrying value |
Fair value |
|||||||||||||
2017 First Lien Term Facility |
$ | 786.6 | $ | 730.6 | $ | 794.6 | $ | 691.3 | ||||||||
2019 First Lien Term Facility |
98.5 | 93.0 | 99.5 | 87.1 | ||||||||||||
2017 Second Lien Term Facility |
310.0 | 241.8 | 310.0 | 201.5 | ||||||||||||
Revolving Facility |
142.6 | 142.6 | 52.0 | 52.0 |
• | Global Footprint: |
• | Breadth of Offering: |
• | World-Class Platform: |
• | Operational Flexibility: |
• | Market Leadership: |
• | Continuous Innovation: |
• | Focus on Innovation – in-house resources. We maintain a technical research and software development team focused on bringing new innovations to market. We believe this is a competitive advantage that sets us apart from our competitors who have acquired, or do not offer, similar technologies, positioning us to be a leader in using technology to transform the data center and interconnection experience for our customers. Customers want data center providers that can evolve and provide innovative products and services as technology advances, and we believe we have demonstrated this capability. |
• | Programmability “API-first” approach to offer maximum flexibility, cross-platform versatility and custom solutioning. In addition, by considering API development early on, we built with future functionality in mind, laying the groundwork for an extensible platform. |
• | “Cloud-Like” Agility on-demand provisioning and customization of each element of the traditional data center—including storage, compute, networking, and management making the data center easier to consume. By providing our customers with the financial and operational flexibility of the cloud alongside the performance and security of enterprise-grade infrastructure, we believes we deliver a solution that maximizes their ability to compete in today’s digital economy. |
• | Intelligent Automation as a Core Competency |
• | Seasoned Management Team with Proven Track Record – |
Name |
Age |
Position | ||
Executive Officers |
||||
Nelson Fonseca |
47 | President, Chief Executive Officer and Director | ||
Randy Rowland |
49 | Chief Operating Officer | ||
Carlos Sagasta |
51 | Chief Financial Officer | ||
Victor Semah |
39 | Chief Legal Officer, Chief Compliance Officer & Secretary | ||
Leo Taddeo |
55 | Chief Information Security Officer, President of Cyxtera Federal Group | ||
Directors |
||||
Fahim Ahmed |
42 | Director | ||
John W. Diercksen |
71 | Director | ||
Michelle Felman |
58 | Director | ||
Melissa Hathaway |
52 | Director | ||
Manuel D. Medina |
68 | Chair | ||
Jeffrey Smith |
49 | Director | ||
Raymond Svider |
58 | Director | ||
Gregory Waters |
60 | Lead Independent Director |
• | appointing, compensating, retaining, evaluating, terminating and overseeing Cyxtera’s independent registered public accounting firm; |
• | discussing with Cyxtera’s independent registered public accounting firm their independence from management; |
• | reviewing with Cyxtera’s independent registered public accounting firm the scope and results of their audit; |
• | pre-approving all audit and permissible non-audit services to be performed by Cyxtera’s independent registered public accounting firm; |
• | overseeing the financial reporting process and discussing with management and Cyxtera’s independent registered public accounting firm the interim and annual financial statements that Cyxtera files with the SEC; |
• | reviewing and monitoring Cyxtera’s accounting principles, accounting policies, financial and accounting controls and compliance with legal and regulatory requirements; and |
• | establishing procedures for the confidential anonymous submission of concerns regarding questionable accounting, internal controls or auditing matters. |
• | establishing the compensation of senior management, including salaries, bonuses, termination arrangements, and other executive officer benefits; |
• | establishing director compensation; and |
• | administering Cyxtera’s equity incentive plans. |
• | overseeing the selection of persons to be nominated to serve on Cyxtera’s board of directors; and |
• | developing a set of corporate governance policies and principles and recommending to Cyxtera’s board of directors any changes to such policies and principles. |
Name and Principal Position |
Year |
Salary($) |
Non-Equity Incentive Plan Compensation ($) |
All Other Compensation ($) |
Total ($) |
|||||||||||||||
Nelson Fonseca President and Chief Executive Officer |
2020 | 500,000 | 725,685 | (2) | 9,975 | (4) | 1,235,660 | |||||||||||||
Randy Rowland Chief Operating Officer |
2020 | 400,000 | 464,438 | (3) | — | 864,438 | ||||||||||||||
Carlos Sagasta Chief Financial Officer |
2020 | 350,095 | (1) | 464,438 | (3) | 9,975 | (4) | 824,508 |
(1) | Amount represents the base salary received by Mr. Sagasta in 2020, which was based on his $400,000 annual base salary rate and pro-rated to reflect his appointment as Executive Vice President and Chief Financial Officer on February 18, 2020. |
(2) | Amount represents (i) a $500,000 annual performance-based cash bonus for achievement of corporate performance goals at 100% of target levels and (ii) a $225,685 one-time cash bonus for completion of certain specific initiatives, each as described below in the section titled “ —2020 Bonuses |
(3) | Amount represents (i) a $320,000 annual performance-based cash bonus for achievement of corporate performance goals at 100% of target levels and (ii) a $144,438 one-time cash bonus for completion of certain specific initiatives, each as described below in the section titled “ —2020 Bonuses |
(4) | Amount represents employer matching contributions to a 401(k) retirement savings plan maintained through one of our subsidiaries on behalf of the named executive officer. |
Name |
2020 Annual Base Salary ($) |
|||
Nelson Fonseca |
500,000 | |||
Randy Rowland |
400,000 | |||
Carlos Sagasta (1) |
400,000 |
(1) | Mr. Sagasta was appointed as our Executive Vice President and Chief Financial Officer on February 18, 2020. |
Option Awards |
||||||||||||||||||
Name |
Grant Date |
Number of Securities Underlying Unexercised Options (#) Exercisable (1) |
Number of Securities Underlying Unexercised Options (#) Unexercisable (1) |
Option Exercise Price ($) (2) |
Option Expiration Date (2) |
|||||||||||||
Nelson Fonseca |
5/1/2017 | 58,259 | 14,241 | — | — | |||||||||||||
Nelson Fonseca |
11/18/2019 | 6,169 | 16,862 | — | — | |||||||||||||
Randy Rowland |
5/1/2017 | 50,223 | 12,277 | — | — | |||||||||||||
Randy Rowland |
11/18/2019 | 4,407 | 12,044 | — | — |
(1) | The Class B Units vest as to 25% of such Class B Units on the first anniversary of the date of grant and as to 75% of such Class B Units in substantially equal monthly installments over 42 months thereafter, subject generally to continued employment. Upon the completion of either (i) a transaction which results in the sale of all or substantially all of Cyxtera Stockholder’s and its subsidiaries’ assets or (ii) a transaction which results in the change of over 50% of the beneficial ownership of the voting units of Cyxtera Stockholder, all such Class B Units then unvested shall become fully vested, provided that the applicable named executive officer has remained continuously employed with Cyxtera from the date of grant to the date of such transaction. The Business Combination did not constitute such transaction and will not cause the vesting of Class B Units to be accelerated. |
(2) | The outstanding Class B Units are most similar to option awards in that they share in equity value appreciation from and after the date of grant. However, they do not have an exercise price or expiration date. |
Name |
Fees Earned or Paid in Cash ($) (1) |
Total ($) |
||||||
Fahim Ahmed |
— | — | ||||||
John Diercksen |
150,000 | 150,000 | ||||||
Michelle Felman |
— | — | ||||||
Melissa Hathaway |
— | — | ||||||
Manuel Medina (2) |
— | — | ||||||
Jeffrey Smith |
— | — | ||||||
Raymond Svider |
— | — | ||||||
Gregory Waters |
— | — |
(1) | Amounts represent annual retainer and committee membership fees earned by our non-affiliated non-employee directors for 2020. |
(2) | Mr. Medina was an executive officers of Legacy Cyxtera but not a named executive officer for 2020. The table does not include compensation paid to him in connection with his service as an employee. Mr. Medina did not receive compensation for his service as a director in 2020. |
Name |
Class B Units Outstanding at Fiscal Year End |
|||
Fahim Ahmed |
— | |||
John Diercksen |
2,812 | |||
Pete Hayes |
2,812 | |||
Manuel Medina |
184,197 | |||
Benjamin Phillips |
— | |||
Rene Rodriguez |
32,813 | |||
Raymond Svider |
— |
• | we have been or are to be a participant; |
• | the amount involved exceeds or will exceed $120,000; and |
• | any of our directors, executive officers or beneficial holders of more than 5% of our capital stock, or any immediate family member of, or person sharing the household with, any of these individuals (other than tenants or employees), had or will have a direct or indirect material interest. |
• | each person who is the beneficial owner of more than 5% of the outstanding shares of our Common Stock; |
• | each of our named executive officers and directors; and |
• | all of our executive officers and directors as a group. |
Name of Beneficial Owner (1) |
Number of Shares of Class A Common Stock Beneficially Owned |
Percentage of Outstanding Class A Common Stock |
||||||
5% Stockholders: |
||||||||
SIS Holdings LP(1)(2)(5) |
109,850,000 | 64.7 | % | |||||
SVAC Sponsor LLC(3)(7) |
16,203,840 | 9.4 | % | |||||
Starboard Value LP(4)(5)(6) |
22,130,128 | 12.9 | % | |||||
Directors and Executive Officers: |
||||||||
Fahim Ahmed |
— | — | ||||||
John W. Diercksen |
— | — | ||||||
Michelle Felman |
— | — | ||||||
Melissa Hathaway |
— | — | ||||||
Jeffrey Smith(5)(6) |
22,130,128 | 12.9 | % | |||||
Raymond Svider |
— | — | ||||||
Manuel D. Medina(2) |
109,850,000 | 64.7 | % | |||||
Gregory Waters |
— | — | ||||||
Nelson Fonseca |
— | — | ||||||
Randy Rowland |
— | — | ||||||
Carlos Sagasta |
— | — | ||||||
Victor Semah |
— | — | ||||||
Leo Taddeo |
— | — | ||||||
Directors and executive officers as a group (13 individuals) |
132,010,128 | 77.6 | % |
* | Less than 1%. |
(1) | SIS Holdings LP is the record holder of 106,100,000 shares of Class A common stock and has the right to acquire 3,750,000 shares of Class A common stock within 60 days pursuant to an optional share purchase |
agreement. The general partner of SIS Holdings LP is SIS Holdings GP LLC, which is managed by a board of directors, a majority of which is appointed by BCEC - SIS Holdings L.P. The general partners of BCEC - SIS Holdings L.P. are CIE Management IX Limited and BCEC Management X Limited, which are controlled by the board of directors, which are appointed by BC Partners Group Holdings Limited, which is a majority-owned subsidiary of BC Partners Holdings Limited, which is controlled by Lee Clark, Karen Jamieson, Mark Rodliffe and Nikos Stathopoulos. As a result, each of the foregoing entities may be deemed to share voting and investment power over the shares of Class A common stock held by SIS Holdings LP. The business address of SIS Holdings LP and SIS Holdings GP LLC is 2333 Ponce De Leon Boulevard, Suite 900, Coral Gables, Florida 33134. The business address of BC Partners Holdings Ltd. and BC Partners Group Holdings Ltd. is West Wing, Floor 2, Trafalgar Court, Les Banques, St. Peter, Port Guernsey. The business address of BCEC - SIS Holdings L.P., BCEC Management X Ltd. and CIE Management IX Ltd. is Arnold House P.O. Box 273, St. Julian’s Avenue, St. Peter, Port Guernsey. |
(2) | Medina Capital Fund II - SIS Holdco, L.P. maintains the right (subject to certain conditions) to elect one of BCEC - SIS Holdings L.P.’s designees to the Board of Directors of Cyxtera and a negative consent right over the disposition of the Class A common stock held by SIS Holdings LP. Medina Capital Fund II—SIS Holdco GP, LLC is the general partner of Medina Capital Fund II - SIS Holdco, L.P., which is ultimately controlled by Manuel D. Medina. As a result, Mr. Medina and each of the foregoing entities may be deemed to share voting and investment power over the shares of Class A common stock held by SIS Holdings LP. |
(3) | SVAC Manager LLC, a Delaware limited liability company, is the manager of SVAC Sponsor LLC. SVAC Sponsor LLC’s business address is 777 Third Avenue, 18th Floor, New York, New York 10017. |
(4) | Starboard Value LP, as the investment manager of Starboard Value and Opportunity Master Fund Ltd (“Starboard V&O Fund”), Starboard Value and Opportunity C LP (“Starboard C LP”), Starboard Value and Opportunity Master Fund L LP (“Starboard L Master”), Starboard X Master Fund Ltd (“Starboard X Master”) and a certain managed account (“Starboard Value LP Account”) and the manager of Starboard Value and Opportunity S LLC (“Starboard S LLC”), may be deemed the beneficial owner of the (i) 12,384,694 shares of Class A common stock beneficially owned by Starboard V&O Fund, (ii) 2,189,382 shares of Class A common stock beneficially owned by Starboard S LLC, (iii) 1,301,928 shares of Class A common stock beneficially owned by Starboard C LP, (iv) 1,001,486 shares of Class A common stock owned by Starboard L Master, (v) 1,722,647 shares of Class A common stock owned by Starboard X Master and (vi) 3,529,991 shares of Class A common stock through the Starboard Value LP Account. Starboard Value LP disclaims beneficial ownership of such shares except to the extent of its pecuniary interest therein. The business address of Starboard Value LP is 777 Third Avenue, 18th Floor, New York, New York 10017. |
(5) | Jeffrey C. Smith may be deemed to beneficially own 22,130,128 shares of Class A common stock because he is a member of Starboard Value GP, LLC, which is the general partner of Starboard Value LP, and, therefore, may be deemed to direct the voting and dispositive decisions of Starboard Value LP with respect to such Class A common stock. Mr. Smith disclaims beneficial ownership of such shares except to the extent of his pecuniary interest therein. The business address of Mr. Smith and Starboard Value LP is 777 Third Avenue, 18th Floor, New York, New York 10017. |
(6) | These shares of Class A common stock reported as beneficially owned include shares of Class A common stock that may be received upon exercise of warrants or through the optional share purchase agreement within 60 days. |
(7) | Pursuant to the stockholder’s agreement, SVAC Sponsor LLC and SIS Holdings LP may be deemed to be a group. If SVAC Sponsor LLC and SIS Holdings LP were a group, such group would be deemed to beneficially own 126,053,840, or 71.4%, of the outstanding Class A Common Stock. |
Name of Selling Stockholder |
Non-Derivative Class A Common Stock Beneficially Owned Prior to Offering |
Number of Warrants |
Number of Shares of Class A Common Stock Being Offered(1) |
Number of Warrants Being Offered |
Class A Common Stock Beneficially Owned After the Offered Shares of Class A Common Stock are Sold |
|||||||||||||||||||
Number |
Percent |
|||||||||||||||||||||||
Alberta Investment Management Corporation (2) |
1,000,000 | — | 1,000,000 | — | — | — | ||||||||||||||||||
BEMAP Master Fund Ltd. (2) |
255,539 | — | 255,539 | — | — | — | ||||||||||||||||||
Bespoke Alpha MAC MIM LP (2) |
37,431 | — | 37,431 | — | — | — | ||||||||||||||||||
Blackstone Aqua Master Sub-Fund, a sub-fund of Blackstone Global Master Fund ICAV (2) |
1,000,000 | — | 1,000,000 | — | — | — | ||||||||||||||||||
Citadel Multi-Strategy Equities Master Fund Ltd. (2) |
1,000,000 | — | 1,000,000 | — | — | — | ||||||||||||||||||
CVI Investments, Inc. (2)(3) |
1,000,000 | — | 1,000,000 | — | — | — | ||||||||||||||||||
Difesa Master Fund, LP (2) |
100,000 | — | 100,000 | — | — | — | ||||||||||||||||||
DS Liquid Div RVA MON LLC (2) |
305,179 | — | 305,179 | — | — | — | ||||||||||||||||||
FIAM Group Trust For Employee Benefit Plans - FIAM REIT Commingled Pool (2) |
30,967 | — | 30,967 | — | — | — | ||||||||||||||||||
FIAM Target Date Blue Chip Growth Commingled Pool (2) |
88,428 | — | 88,428 | — | — | — | ||||||||||||||||||
Fidelity Advisor Series I - Fidelity Advisor Growth Opportunities Fund (2) |
969,061 | — | 969,061 | — | — | — | ||||||||||||||||||
Fidelity Advisor Series I - Fidelity Advisor Series Growth Opportunities Fund (2) |
33,716 | — | 33,716 | — | — | — | ||||||||||||||||||
Fidelity Advisor Series VII - Fidelity Advisor Real Estate Fund (2) |
180,025 | — | 180,025 | — | — | — | ||||||||||||||||||
Fidelity Blue Chip Growth Commingled Pool (2) |
39,726 | — | 39,726 | — | — | — | ||||||||||||||||||
Fidelity Blue Chip Growth Institutional Trust (2) |
3,020 | — | 3,020 | — | — | — | ||||||||||||||||||
Fidelity Central Investment Portfolios LLC - Fidelity Real Estate Equity Central Fund (2) |
391,426 | — | 391,426 | — | — | — | ||||||||||||||||||
Fidelity Central Investment Portfolios LLC - Fidelity U.S. Equity Central Fund - Real Estate Sub (2) |
319,903 | — | 319,903 | — | — | — | ||||||||||||||||||
Fidelity Investments Canada ULC - Fidelity U.S. REIT Institutional Trust (2) |
3,341 | — | 3,341 | — | — | — |
Name of Selling Stockholder |
Non-Derivative Class A Common Stock Beneficially Owned Prior to Offering |
Number of Warrants |
Number of Shares of Class A Common Stock Being Offered(1) |
Number of Warrants Being Offered |
Class A Common Stock Beneficially Owned After the Offered Shares of Class A Common Stock are Sold |
|||||||||||||||||||
Number |
Percent |
|||||||||||||||||||||||
Fidelity Investments Canada ULC - US Monthly Income - U.S. REITs Sub Account (2) |
43,815 | — | 43,815 | — | — | — | ||||||||||||||||||
Fidelity NorthStar Fund (2) |
41,195 | — | 41,195 | — | — | — | ||||||||||||||||||
Fidelity Securities Fund - Fidelity Blue Chip Growth Fund (2) |
1,114,254 | — | 1,114,254 | — | — | — | ||||||||||||||||||
Fidelity Securities Fund - Fidelity Blue Chip Growth K6 Fund (2) |
122,533 | — | 122,533 | — | — | — | ||||||||||||||||||
Fidelity Securities Fund - Fidelity Flex Large Cap Growth Fund (2) |
2,528 | — | 2,528 | — | — | — | ||||||||||||||||||
Fidelity Securities Fund - Fidelity Series Blue Chip Growth Fund (2) |
129,511 | — | 129,511 | — | — | — | ||||||||||||||||||
Fidelity Select Portfolios - Fidelity Real Estate Investment Portfolio (2) |
1,500,000 | — | 1,500,000 | — | — | — | ||||||||||||||||||
Fidelity Select Portfolios - Select Construction and Housing Portfolio (2) |
200,000 | — | 200,000 | — | — | — | ||||||||||||||||||
Fidelity U.S. Growth Opportunities Investment Trust (2) |
12,381 | — | 12,381 | — | — | — | ||||||||||||||||||
Ghisallo Master Fund LP (2) |
300,000 | — | 300,000 | — | — | — | ||||||||||||||||||
Healthcare of Ontario Pension Plan Trust Fund (2) |
500,000 | — | 500,000 | — | — | — | ||||||||||||||||||
IAM Investments ICAV – O’Connor Event Driven UCITS Fund (2) |
3,400 | — | 3,400 | — | — | — | ||||||||||||||||||
Kepos Alpha Master Fund L.P. (2) |
1,100,000 | — | 1,100,000 | — | — | — | ||||||||||||||||||
Lowell W. Robinson (4) |
30,000 | — | 30,000 | — | — | — | ||||||||||||||||||
Magnetar Constellation Fund II Ltd (2) |
32,000 | — | 32,000 | — | — | — | ||||||||||||||||||
Magnetar Constellation Master Fund Ltd (2) |
112,000 | — | 112,000 | — | — | — | ||||||||||||||||||
Magnetar Lake Credit Fund LLC (2) |
16,000 | — | 16,000 | — | — | — | ||||||||||||||||||
Magnetar Longhorn Fund LP (2) |
12,000 | — | 12,000 | — | — | — | ||||||||||||||||||
Magnetar SC Fund Ltd (2) |
25,000 | — | 25,000 | — | — | — | ||||||||||||||||||
Magnetar Structured Credit Fund, LP (2) |
44,000 | — | 44,000 | — | — | — | ||||||||||||||||||
Magnetar Xing He Master Fund Ltd (2) |
39,000 | — | 39,000 | — | — | — | ||||||||||||||||||
Managed Account of Starboard Value LP (5)(6) |
2,702,947 | 313,294 | 3,016,241 | 313,294 | 513,750 | (7) | 0.3 | % | ||||||||||||||||
Martin D. McNulty (4) |
505,150 | — | 505,150 | — | — | — | ||||||||||||||||||
Mendocino Capital, LLC (2) |
2,000,000 | — | 2,000,000 | — | — | — | ||||||||||||||||||
Michelle Felman 2020 Irrecovable Trust (4) |
30,000 | — | 30,000 | — | — | — | ||||||||||||||||||
Monashee Pure Alpha SPV I LP (2) |
158,936 | — | 158,936 | — | — | — | ||||||||||||||||||
Monashee Solitario Fund LP (2) |
198,609 | — | 198,609 | — | — | — | ||||||||||||||||||
Nineteen77 Global Merger Arbitrage Master Limited (2) |
459,900 | — | 459,900 | — | — | — | ||||||||||||||||||
Nineteen77 Global Merger Arbitrage Opportunity Fund (2) |
76,800 | — | 76,800 | — | — | — | ||||||||||||||||||
Nineteen77 Global Multi-Strategy Alpha Master Limited (2) |
459,900 | — | 459,900 | — | — | — | ||||||||||||||||||
Owl Rock Technology Finance Corp. (2) |
1,500,000 | — | 1,500,000 | — | — | — | ||||||||||||||||||
Pauline J. Brown (4) |
30,000 | — | 30,000 | — | — | — | ||||||||||||||||||
Purpose Alternative Credit Fund – T LLC (2) |
5,000 | — | 5,000 | — | — | — | ||||||||||||||||||
Purpose Alternative Credit Fund Ltd (2) |
15,000 | — | 15,000 | — | — | — | ||||||||||||||||||
Robert L. Greene (4) |
30,000 | — | 30,000 | — | — | — | ||||||||||||||||||
SA Fidelity Institutional AM Real Estate Portfolio (2) |
125,181 | — | 125,181 | — | — | — | ||||||||||||||||||
Saba Capital Master Fund III L.P. (2) |
65,170 | — | 65,170 | — | — | — | ||||||||||||||||||
Saba Capital Master Fund Ltd. (2) |
170,870 | — | 170,870 | — | — | — |
Name of Selling Stockholder |
Non-Derivative Class A Common Stock Beneficially Owned Prior to Offering |
Number of Warrants |
Number of Shares of Class A Common Stock Being Offered(1) |
Number of Warrants Being Offered |
Class A Common Stock Beneficially Owned After the Offered Shares of Class A Common Stock are Sold |
|||||||||||||||||||
Number |
Percent |
|||||||||||||||||||||||
Saba II AIV LP (2) |
463,960 | — | 463,960 | — | — | — | ||||||||||||||||||
Sentinel Dome Partners, LLC (2)(8) |
300,000 | — | 300,000 | — | — | — | ||||||||||||||||||
SFL SPV I LLC (2) |
44,306 | — | 44,306 | — | — | — | ||||||||||||||||||
SIS Holdings LP (9) |
106,100,000 | — | 106,100,000 | — | 3,750,000 | (7) | 2.2 | % | ||||||||||||||||
Starboard Value and Opportunity C LP (6)(10) |
975,053 | 109,375 | 1,084,428 | 109,375 | 217,500 | (7) | 0.1 | % | ||||||||||||||||
Starboard Value and Opportunity Master Fund L LP (6)(11) |
766,211 | 85,275 | 851,486 | 85,275 | 150,000 | (7) | 0.1 | % | ||||||||||||||||
Starboard Value and Opportunity Master Fund Ltd (6)(12) |
9,228,104 | 1,064,090 | 10,292,194 | 1,064,090 | 2,092,500 | (7) | 1.2 | % | ||||||||||||||||
Starboard Value and Opportunity S LLC (6)(13) |
1,642,105 | 183,527 | 1,825,632 | 183,527 | 363,750 | (7) | 0.2 | % | ||||||||||||||||
Starboard X Master Fund Ltd (6)(14) |
1,211,895 | 98,252 | 1,310,147 | 98,252 | 412,500 | (7) | 0.2 | % | ||||||||||||||||
SVAC Sponsor LLC (4)(15) |
9,480,713 | 6,723,127 | 16,203,840 | 6,723,127 | — | — | ||||||||||||||||||
Tech Opportunities LLC (2)(16) |
300,000 | — | 300,000 | — | — | — | ||||||||||||||||||
Variable Insurance Products Fund III - Growth Opportunities Portfolio (2) |
143,648 | — | 143,648 | — | — | — | ||||||||||||||||||
Variable Insurance Products Fund IV - VIP Real Estate Portfolio (2) |
150,297 | — | 150,297 | — | — | — | ||||||||||||||||||
Verizon (DC) - FIAM REIT Separate Account (2) |
255,044 | — | 255,044 | — | — | — | ||||||||||||||||||
Total Shares |
151,732,178 | 8,576,940 | 160,309,118 | 8,576,940 | 7,500,000 | 4.3 | % |
(1) | The amounts set forth in this column are the number of shares of Class A common stock that may be offered by each Selling Stockholder using this prospectus. These amounts do not represent any other shares of our common stock that the Selling Stockholder may own beneficially or otherwise. |
(2) | Received such shares pursuant to the PIPE Issuance. |
(3) | Heights Capital Management, Inc., the authorized agent of CVI Investments, Inc. (“CVI”), has discretionary authority to vote and dispose of the shares held by CVI and may be deemed to be the beneficial owner of these shares. Martin Kobinger, in his capacity as Investment Manager of Heights Capital Management, Inc., may also be deemed to have investment discretion and voting power over the shares held by CVI. Mr. Kobinger disclaims any such beneficial ownership of the shares. The principal business address of CVI is c/o Heights Capital Management, Inc., 101 California Street, Suite 3250, San Francisco, California 94111 |
(4) | Received such shares upon conversation of the founder shares from Class B common stock to Class A common stock at the consummation of the Business Combination. |
(5) | Received 924,000 shares pursuant to the PIPE Issuance and 1,778,947 shares pursuant to the forward purchase agreements. |
(6) | Received such warrants pursuant to the forward purchase agreements. |
(7) | Represents the number of shares that may be received upon the exercise of the selling stockholder’s portion of the Optional Share Purchase Agreement. |
(8) | Includes (i) 21,297 shares owned by NPB Manager Fund, SPC. - Segregated Portfolio 102, (ii) 36,209 shares owned by NPB Manager Fund, SPC. - Segregated Portfolio 103, (iii) 183,981 shares owned by SDP Flagship Master Fund, LP, and (iv) 58,513 shares owned by SDP Opportunities Master Fund L.P. |
(9) | Received such shares as consideration for its equity securities in Legacy Cyxtera upon the consummation of the Business Combination. |
(10) | Received 354,000 shares pursuant to the PIPE Issuance and 621,053 shares pursuant to the forward purchase agreements. |
(11) | Received 282,000 shares pursuant to the PIPE Issuance and 484,211 shares pursuant to the forward purchase agreements. |
(12) | Received 3,186,000 shares pursuant to the PIPE Issuance and 6,042,104 shares pursuant to the forward purchase agreements. |
(13) | Received 600,000 shares pursuant to the PIPE Issuance and 1,042,105 shares pursuant to the forward purchase agreements. |
(14) | Received 654,000 shares pursuant to the PIPE Issuance and 557,895 shares pursuant to the forward purchase agreements. |
(15) | Received such warrants issued in connection with SVAC’s IPO. |
(16) | Hudson Bay Capital Management LP, the investment manager of Tech Opportunities LLC, has voting and investment power over these securities. Sander Gerber is the managing member of Hudson Bay Capital GP LLC, which is the general partner of Hudson Bay Capital Management LP. Each of Tech Opportunities LLC and Sander Gerber disclaims beneficial ownership over these securities. |
• | in whole and not in part; |
• | at a price of $0.01 per warrant; |
• | upon a minimum of 30 days’ prior written notice of redemption, or the 30-day redemption period, to each warrant holder; and |
• | if, and only if, the last sale price of our Class A common stock equals or exceeds $18.00 per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like) for any 20 trading days within a 30-trading day period ending on the third trading day prior to the date on which we send the notice of redemption to the warrant holders. |
• | in whole and not in part; |
• | at $0.10 per warrant upon a minimum of 30 days’ prior written notice of redemption provided that holders will be able to exercise their warrants prior to redemption and receive that number of shares of Class A common stock determined by reference to the table below, based on the redemption date and the “fair market value” of our Class A common stock except as otherwise described below; |
• | if, and only if, the last sale price of our Class A common stock equals or exceeds $10.00 per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like) on the trading day prior to the date on which we send the notice of redemption to the warrantholders; |
• | if, and only if, the private placement warrants issued to the Sponsor at the closing of our Initial Public Offering and the private placement warrants to be issued pursuant to the forward purchase agreement are also concurrently called for redemption at the same price (equal to a number of shares of Class A common stock) as the outstanding redeemable warrants, as described above; and |
• | if and only if, there is an effective registration statement covering the issuance of the shares of Class A common stock issuable upon exercise of the warrants and a current prospectus relating thereto available throughout the 30-day period after written notice of redemption is given, or an exemption from registration is available. |
Redemption date (period to expiration of warrants) |
Fair market value of Class A common stock |
|||||||||||||||||||||||||||||||||||
$10.00 |
$11.00 |
$12.00 |
$13.00 |
$14.00 |
$15.00 |
$16.00 |
$17.00 |
$18.00 |
||||||||||||||||||||||||||||
57 months |
0.257 | 0.277 | 0.294 | 0.310 | 0.324 | 0.337 | 0.348 | 0.358 | 0.365 | |||||||||||||||||||||||||||
54 months |
0.252 | 0.272 | 0.291 | 0.307 | 0.322 | 0.335 | 0.347 | 0.357 | 0.365 | |||||||||||||||||||||||||||
51 months |
0.246 | 0.268 | 0.287 | 0.304 | 0.320 | 0.333 | 0.346 | 0.357 | 0.365 | |||||||||||||||||||||||||||
48 months |
0.241 | 0.263 | 0.283 | 0.301 | 0.317 | 0.332 | 0.344 | 0.356 | 0.365 | |||||||||||||||||||||||||||
45 months |
0.235 | 0.258 | 0.279 | 0.298 | 0.315 | 0.330 | 0.343 | 0.356 | 0.365 | |||||||||||||||||||||||||||
42 months |
0.228 | 0.252 | 0.274 | 0.294 | 0.312 | 0.328 | 0.342 | 0.355 | 0.364 | |||||||||||||||||||||||||||
39 months |
0.221 | 0.246 | 0.269 | 0.290 | 0.309 | 0.325 | 0.340 | 0.354 | 0.364 | |||||||||||||||||||||||||||
36 months |
0.213 | 0.239 | 0.263 | 0.285 | 0.305 | 0.323 | 0.339 | 0.353 | 0.364 | |||||||||||||||||||||||||||
33 months |
0.205 | 0.232 | 0.257 | 0.280 | 0.301 | 0.320 | 0.337 | 0.352 | 0.364 | |||||||||||||||||||||||||||
30 months |
0.196 | 0.224 | 0.250 | 0.274 | 0.297 | 0.316 | 0.335 | 0.351 | 0.364 | |||||||||||||||||||||||||||
27 months |
0.185 | 0.214 | 0.242 | 0.268 | 0.291 | 0.313 | 0.332 | 0.350 | 0.364 | |||||||||||||||||||||||||||
24 months |
0.173 | 0.204 | 0.233 | 0.260 | 0.285 | 0.308 | 0.329 | 0.348 | 0.364 | |||||||||||||||||||||||||||
21 months |
0.161 | 0.193 | 0.223 | 0.252 | 0.279 | 0.304 | 0.326 | 0.347 | 0.364 | |||||||||||||||||||||||||||
18 months |
0.146 | 0.179 | 0.211 | 0.242 | 0.271 | 0.298 | 0.322 | 0.345 | 0.363 | |||||||||||||||||||||||||||
15 months |
0.130 | 0.164 | 0.197 | 0.230 | 0.262 | 0.291 | 0.317 | 0.342 | 0.363 | |||||||||||||||||||||||||||
12 months |
0.111 | 0.146 | 0.181 | 0.216 | 0.250 | 0.282 | 0.312 | 0.339 | 0.363 | |||||||||||||||||||||||||||
9 months |
0.090 | 0.125 | 0.162 | 0.199 | 0.237 | 0.272 | 0.305 | 0.336 | 0.362 | |||||||||||||||||||||||||||
6 months |
0.065 | 0.099 | 0.137 | 0.178 | 0.219 | 0.259 | 0.296 | 0.331 | 0.362 | |||||||||||||||||||||||||||
3 months |
0.034 | 0.065 | 0.104 | 0.150 | 0.197 | 0.243 | 0.286 | 0.326 | 0.361 | |||||||||||||||||||||||||||
0 months |
— | — | 0.042 | 0.115 | 0.179 | 0.233 | 0.281 | 0.323 | 0.361 |
• | the board of directors approved the acquisition prior to its consummation; |
• | the interested stockholder owned at least 85% of the outstanding voting stock upon consummation of the acquisition; or |
• | the business combination is approved by the board of directors, and by a 2/3 majority vote of the other stockholders in a meeting. |
• | purchases by a broker-dealer as principal and resale by such broker-dealer for its own account pursuant to this prospectus; |
• | ordinary brokerage transactions and transactions in which the broker solicits purchasers; |
• | block trades in which the broker-dealer so engaged will attempt to sell the shares as agent but may position and resell a portion of the block as principal to facilitate the transaction; |
• | an over-the-counter |
• | through trading plans entered into by a Selling Securityholder pursuant to Rule 10b5-1 under the Exchange Act, that are in place at the time of an offering pursuant to this prospectus and any applicable prospectus supplement hereto that provide for periodic sales of their securities on the basis of parameters described in such trading plans; |
• | to or through underwriters or broker-dealers; |
• | in “at the market” offerings, as defined in Rule 415 under the Securities Act, at negotiated prices, at prices prevailing at the time of sale or at prices related to such prevailing market prices, including sales made directly on a national securities exchange or sales made through a market maker other than on an exchange or other similar offerings through sales agents; |
• | in privately negotiated transactions; |
• | in options transactions; |
• | through a combination of any of the above methods of sale; or |
• | any other method permitted pursuant to applicable law. |
Starboard Value Acquisition Corp. |
||||
Condensed Consolidated Financial Statements |
||||
F-2 | ||||
F-3 | ||||
F-4 | ||||
F-5 | ||||
F-6 | ||||
Audited Financial Statements |
||||
F-26 |
||||
F-27 |
||||
F-28 |
||||
F-29 |
||||
F-30 |
||||
Notes to Financial Statements (As Restated) |
F-31 |
|||
Cyxtera Technologies, Inc. |
||||
Unaudited Financial Statements |
||||
F-53 | ||||
F-54 | ||||
F-55 | ||||
F-56 | ||||
F-57 | ||||
F-58 | ||||
Audited Financial Statements |
||||
F-77 and F-78 |
||||
F-79 | ||||
F-80 | ||||
F-81 | ||||
F-82 | ||||
F-83 | ||||
F-85 |
ITEM 1. |
FINANCIAL STATEMENTS |
June 30, 2021 |
December 31, 2020 |
|||||||
(Unaudited) |
||||||||
Assets: |
||||||||
Current assets: |
||||||||
Cash |
$ | 1,405,039 | $ | 2,557,154 | ||||
Prepaid expenses |
204,970 | 223,840 | ||||||
|
|
|
|
|||||
Total current assets |
1,610,009 | 2,780,994 | ||||||
Investments held in Trust Account |
404,471,576 | 404,403,316 | ||||||
|
|
|
|
|||||
Total Assets |
$ |
406,081,585 |
$ |
407,184,310 |
||||
|
|
|
|
|||||
Liabilities and Stockholders’ Equity: |
||||||||
Current liabilities: |
||||||||
Accounts payable |
$ | 513,343 | $ | 12,223 | ||||
Accrued expenses |
1,754,370 | 70,000 | ||||||
Franchise tax payable |
20,891 | 200,841 | ||||||
Income tax payable |
1,351 | — | ||||||
|
|
|
|
|||||
Total current liabilities |
2,289,955 | 283,064 | ||||||
Deferred legal fees |
250,000 | 250,000 | ||||||
Deferred underwriting commissions in connection with the initial public offering |
18,190,554 | 18,190,554 | ||||||
Derivative liabilities |
45,566,110 | 47,320,290 | ||||||
|
|
|
|
|||||
Total liabilities |
66,296,619 | 66,043,908 | ||||||
Commitments and Contingencies |
||||||||
Class A common stock; 33,478,496 and 33,614,040 shares subject to possible redemption at $10.00 per share at June 30, 2021 and December 31, 2020, respectively |
334,784,960 | 336,140,400 | ||||||
Stockholders’ Equity: |
||||||||
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; none issued and outstanding at June 30, 2021 and December 31, 2020 |
— | — | ||||||
Class A common stock, $0.0001 par value; 200,000,000 shares authorized; 6,944,957 and 6,809,413 shares issued and outstanding (excluding 33,478,496 and 33,614,040 shares subject to possible redemption) at June 30, 2021 and December 31, 2020, respectively |
694 | 681 | ||||||
Class B common stock, $0.0001 par value; 20,000,000 shares authorized; 10,105,863 shares issued and outstanding at June 30, 2021 and December 31, 2020 |
1,011 | 1,011 | ||||||
Additional paid-in capital |
33,444,285 | 32,088,858 | ||||||
Accumulated deficit |
(28,445,984 | ) | (27,090,548 | ) | ||||
|
|
|
|
|||||
Total stockholders’ equity |
5,000,006 | 5,000,002 | ||||||
|
|
|
|
|||||
Total Liabilities and Stockholders’ Equity |
$ |
406,081,585 |
$ |
407,184,310 |
||||
|
|
|
|
For The Three Months Ended June 30, |
For The Six Months Ended June 30, |
|||||||||||||||
2021 |
2020 |
2021 |
2020 |
|||||||||||||
General and administrative expenses |
$ | 2,009,250 | $ | 43 | $ | 3,016,426 | $ | 44 | ||||||||
Administrative expenses–related party |
30,000 | — | 60,000 | — | ||||||||||||
Franchise tax expense |
50,000 | 1,100 | 100,100 | 2,200 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Loss from operations |
(2,089,250 | ) | (1,143 | ) | (3,176,526 | ) | (2,244 | ) | ||||||||
Other income (expenses) |
||||||||||||||||
Change in fair value of derivative liabilities |
(11,295,050 | ) | — | 1,754,180 | — | |||||||||||
Net gain from investments held in Trust Account |
10,085 | — | 68,260 | — | ||||||||||||
Interest income |
— | — | — | 15 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Loss before income tax expense |
(13,374,215 | ) | (1,143 | ) | (1,354,086 | ) | (2,229 | ) | ||||||||
Income tax expense |
— | — | 1,350 | — | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net loss |
$ | (13,374,215 | ) | $ | (1,143 | ) | $ | (1,355,436 | ) | $ | (2,229 | ) | ||||
|
|
|
|
|
|
|
|
|||||||||
Weighted average shares outstanding of Class A common stock |
40,423,453 | — | 40,423,453 | — | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Basic and diluted net income per share, Class A common stock |
$ | 0.00 | $ | 0.00 | $ | 0.00 | $ | 0.00 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Weighted average shares outstanding of Class B common stock |
10,105,863 | 9,000,000 | 10,105,863 | 9,000,000 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Basic and diluted net loss per share, Class B common stock |
$ | (1.32 | ) | $ | (0.00 | ) | $ | (0.13 | ) | $ | (0.00 | ) | ||||
|
|
|
|
|
|
|
|
For the Three and Six Months Ended June 30, 2021 |
||||||||||||||||||||||||||||
Common Stock |
Total Stockholders’ Equity |
|||||||||||||||||||||||||||
Class A |
Class B |
Additional Paid-In Capital |
Accumulated Deficit |
|||||||||||||||||||||||||
Shares |
Amount |
Shares |
Amount |
|||||||||||||||||||||||||
Balance–December 31, 2020 |
6,809,413 |
$ |
681 |
10,105,863 |
$ |
1,011 |
$ |
32,088,858 |
$ |
(27,090,548 |
) |
$ |
5,000,002 |
|||||||||||||||
Common stock subject to possible redemption |
(1,201,878 | ) | (120 | ) | — | — | (12,018,660 | ) | — | (12,018,780 | ) | |||||||||||||||||
Net income |
— | — | — | — | — | 12,018,779 | 12,018,779 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Balance–March 31, 2021 (unaudited) |
5,607,535 |
561 |
10,105,863 |
1,011 |
20,070,198 |
(15,071,769 |
) |
5,000,001 |
||||||||||||||||||||
Common stock subject to possible redemption |
1,337,422 | 133 | — | — | 13,374,087 | — | 13,374,220 | |||||||||||||||||||||
Net loss |
— | — | — | — | — | (13,374,215 | ) | (13,374,215 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Balance–June 30, 2021 (unaudited) |
6,944,957 |
$ |
694 |
10,105,863 |
$ |
1,011 |
$ |
33,444,285 |
$ |
(28,445,984 |
) |
$ |
5,000,006 |
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For The Three and Six Months Ended June 30, 2020 |
||||||||||||||||||||||||||||
Common Stock |
Total Stockholders’ Equity |
|||||||||||||||||||||||||||
Class A |
Class B |
Additional Paid-In Capital |
Accumulated Deficit |
|||||||||||||||||||||||||
Shares |
Amount |
Shares |
Amount |
|||||||||||||||||||||||||
Balance–December 31, 2019 |
— |
$ |
— |
10,350,000 |
$ |
1,035 |
$ |
23,965 |
$ |
(1,324 |
) |
$ |
23,676 |
|||||||||||||||
Net loss |
— |
— |
— |
— |
— |
(1,086 |
) |
(1,086 |
) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Balance–March 31, 2020 (unaudited) |
— |
— |
10,350,000 |
1,035 |
23,965 |
(2,410 |
) |
22,590 |
||||||||||||||||||||
Net loss |
— |
— |
— |
— |
— |
(1,143 |
) |
(1,143 |
) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Balance–June 30, 2020 (unaudited) |
— |
$ |
— |
10,350,000 |
$ |
1,035 |
$ |
23,965 |
$ |
(3,553 |
) |
$ |
21,447 |
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For The Six Months Ended June 30, |
||||||||
2021 |
2020 |
|||||||
Cash Flows from Operating Activities: |
||||||||
Net loss |
$ | (1,355,436 | ) | $ | (2,229 | ) | ||
Adjustments to reconcile net loss to net cash used in operating activities: |
||||||||
Change in fair value of derivative liabilities |
(1,754,180 | ) | — | |||||
Net gain from investments held in Trust Account |
(68,260 | ) | — | |||||
Changes in operating assets and liabilities: |
||||||||
Prepaid expenses |
18,870 | — | ||||||
Accounts payable |
501,120 | 43 | ||||||
Accrued expenses |
1,684,370 | — | ||||||
Franchise tax payable |
(179,950 | ) | 2,200 | |||||
Income tax payable |
1,351 | — | ||||||
|
|
|
|
|||||
Net cash provided by (used in) operating activities |
(1,152,115 | ) | 14 | |||||
|
|
|
|
|||||
Net change in cash |
(1,152,115 | ) | 14 | |||||
Cash – beginning of the period |
2,557,154 | 72,751 | ||||||
|
|
|
|
|||||
Cash – end of the period |
$ |
1,405,039 |
$ |
72,765 |
||||
|
|
|
|
|||||
Supplemental disclosure of noncash financing activities: |
||||||||
Offering costs included in accounts payable |
$ | — | $ | 291,365 | ||||
Offering costs included in accrued expenses |
$ | — | $ | 388,500 | ||||
Change in value of Class A common stock subject to possible redemption |
$ | (1,355,440 | ) | $ | — |
• | Level 1, defined as observable inputs such as quoted prices for identical instruments in active markets; |
• | Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable such as quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active; and |
• | Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions, such as valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. |
For the Three Months Ended June 30, |
For the Six Months Ended June 30, |
|||||||||||||||
2021 |
2020 |
2021 |
2020 |
|||||||||||||
Class A common stock |
||||||||||||||||
Numerator: Income allocable to Class A common stock |
||||||||||||||||
Income from investments held in Trust Account |
$ | 10,085 | $ | — | $ | 68,260 | $ | — | ||||||||
Less: Company’s portion available to be withdrawn to pay taxes |
(10,085 | ) | — | (68,260 | ) | — | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net income attributable to Class A common stock |
$ |
— |
$ |
— |
$ |
— |
$ |
— |
||||||||
|
|
|
|
|
|
|
|
|||||||||
Denominator: Weighted average Class A common stock |
||||||||||||||||
Basic and diluted weighted average shares outstanding, Class A common stock |
40,423,453 |
— |
40,423,453 |
— |
||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Basic and diluted net income per share, Class A common stock |
$ |
0.00 |
$ |
— |
$ |
0.00 |
$ | — | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Class B common stock |
||||||||||||||||
Numerator: Net income (loss) minus net income allocable to Class A common stock |
||||||||||||||||
Net income (loss) |
$ | (13,374,215 | ) | $ | (1,144 | ) | $ | (1,355,436 | ) | $ | (2,229 | ) | ||||
Net income allocable to Class A common stock |
— | — | — | — | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net income (loss) attributable to Class B common stock |
$ |
(13,374,215 |
) |
$ |
(1,144 |
) |
$ |
(1,355,436 |
) |
$ |
(2,229 |
) | ||||
|
|
|
|
|
|
|
|
For the Three Months Ended June 30, |
For the Six Months Ended June 30, |
|||||||||||||||
2021 |
2020 |
2021 |
2020 |
|||||||||||||
Denominator: Weighted average Class B common stock |
||||||||||||||||
Basic and diluted weighted average shares outstanding, Class B common stock |
$ |
10,105,863 |
$ |
9,000,000 |
$ |
10,105,863 |
$ |
9,000,000 |
||||||||
|
|
|
|
|
|
|
|
|||||||||
Basic and diluted net loss per share, Class B common stock |
$ |
(1.32 |
) |
$ |
(0.00 |
) |
$ |
(0.13 |
) |
$ |
(0.00 |
) | ||||
|
|
|
|
|
|
|
|
• | in whole and not in part; |
• | at a price of $0.01 per warrant; |
• | upon a minimum of 30 days’ prior written notice of redemption; and |
• | if, and only if, the closing price of the Class A common stock equals or exceeds $18.00 per share on each of 20 trading days within the 30-trading day period ending on the third trading day prior to the date on which the Company sends the notice of redemption to the warrant holders. |
• | in whole and not in part; |
• | at $0.10 per warrant upon a minimum of 30 days’ prior written notice of redemption, provided that holders will be able to exercise their warrants prior to redemption and receive that number of shares of Class A common stock determined by reference to an agreed table described in the warrant agreement, based on the redemption date and the “fair market value” of the Class A common stock except as otherwise described below; |
• | if, and only if, the last sale price of the Class A common stock equals or exceeds $10.00 per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like) on the trading day prior to the date on which the Company sends the notice of redemption to the warrantholders; |
• | if, and only if, the Private Placement Warrants and the private placement warrants to be issued pursuant to the forward purchase agreement are also concurrently exchanged at the same price (equal to a number of shares of Class A common stock) as the outstanding Public Warrants, as described above; and |
• | if and only if, there is an effective registration statement covering the issuance of the shares of Class A common stock issuable upon exercise of the warrants and a current prospectus relating thereto available throughout the 30-day period after written notice of redemption is given, or an exemption from registration is available. |
Description |
Quoted Prices in Active Markets (Level 1) |
Significant Other Observable Inputs (Level 2) |
Significant Other Unobservable Inputs (Level 3) |
|||||||||
Assets: |
||||||||||||
Investments held in Trust Account: |
||||||||||||
U.S. Treasury Securities (1) |
$ | 404,470,636 | $ | — | $ | — | ||||||
Liabilities: |
||||||||||||
Derivative warrant liabilities |
$ | 13,676,602 | $ | — | $ | 28,937,428 | ||||||
Forward purchase agreement |
$ | — | $ | — | $ | 2,952,080 |
(1) | Excludes $940 of cash held in the Trust Account as of June 30, 2021. |
Description |
Quoted Prices in Active Markets (Level 1) |
Significant Other Observable Inputs (Level 2) |
Significant Other Unobservable Inputs (Level 3) |
|||||||||
Assets: |
||||||||||||
Investments held in Trust Account: |
||||||||||||
U.S. Treasury Securities (1) |
$ | 404,400,376 | $ | — | $ | — | ||||||
Liabilities: |
||||||||||||
Derivative warrant liabilities |
$ | 13,272,368 | $ | — | $ | 27,244,372 | ||||||
Forward purchase agreement |
$ | — | $ | — | $ | 6,803,550 |
(1) | Excludes $2,940 of cash held in the Trust Account as of December 31, 2020. |
As of June 30, 2021 |
As of December 31, 2020 |
|||||||
Warrants: |
||||||||
Option term (in years) |
5.17 | 5.60 | ||||||
Volatility |
31.30 | % | 27.00 | % | ||||
Risk-free interest rate |
0.90 | % | 0.45 | % | ||||
Expected dividends |
0.00 | % | 0.00 | % | ||||
Stock price |
$ | 9.69 | $ | 10.06 | ||||
Forward purchase agreement: |
||||||||
Expected term |
0.17 | 0.60 | ||||||
Risk-free interest rate |
0.05 | % | 0.09 | % | ||||
Stock price |
$ | 9.69 | $ | 10.06 |
Level 3—Derivative liabilities at December 31, 2020 |
$ | 34,047,922 | ||
Change in fair value of derivative warrant liabilities |
(9,882,725 | ) | ||
|
|
|||
Level 3—Derivative liabilities at March 31, 2021 |
24,165,197 | |||
Change in fair value of derivative warrant liabilities |
7,724,311 | |||
|
|
|||
Level 3—Derivative liabilities at June 30, 2021 |
$ | 31,889,508 | ||
|
|
December 31, 2020 (As Restated) |
December 31, 2019 |
|||||||
Assets: |
||||||||
Current assets: |
||||||||
Cash |
$ | 2,557,154 | $ | 72,751 | ||||
Prepaid expenses |
223,840 | — | ||||||
|
|
|
|
|||||
Total current assets |
2,780,994 | 72,751 | ||||||
Deferred offering costs associated with the proposed public offering |
— | 312,489 | ||||||
Investments held in Trust Account |
404,403,316 | — | ||||||
|
|
|
|
|||||
Total Assets |
$ |
407,184,310 |
$ |
385,240 |
||||
|
|
|
|
|||||
Liabilities and Stockholders’ Equity: |
||||||||
Current liabilities: |
||||||||
Accounts payable |
$ | 12,223 | $ | 253,937 | ||||
Accrued expenses |
70,000 | — | ||||||
Franchise tax payable |
200,841 | 565 | ||||||
Note payable—related party |
— | 107,062 | ||||||
|
|
|
|
|||||
Total current liabilities |
283,064 | 361,564 | ||||||
Deferred legal fees |
250,000 | — | ||||||
Derivative liabilities |
47,320,290 | — | ||||||
Deferred underwriting commissions in connection with the initial public offering |
18,190,554 | — | ||||||
|
|
|
|
|||||
Total liabilities |
66,043,908 | 361,564 | ||||||
Commitments and Contingencies (Note 6) |
||||||||
Class A common stock; 33,614,040 shares subject to possible redemption at $10.00 per share |
336,140,400 | — | ||||||
Stockholders’ Equity: |
||||||||
Preferred stock, $0.0001 par value; 1,000,000 shares authorized; none issued and outstanding |
— | — | ||||||
Class A common stock, $0.0001 par value; 200,000,000 shares authorized; 6,809,413 shares issued and outstanding (excluding 33,614,040 and 0 shares subject to possible redemption) at December 31, 2020; none issued and outstanding at December 31, 2019 |
681 | — | ||||||
Class B common stock, $0.0001 par value; 20,000,000 shares authorized; 10,105,863 shares issued and outstanding at December 31, 2020; 10,350,000 shares issued and outstanding at December 31, 2019 (1) |
1,011 | 1,035 | ||||||
Additional paid-in capital |
32,088,858 | 23,965 | ||||||
Accumulated deficit |
(27,090,548 | ) | (1,324 | ) | ||||
|
|
|
|
|||||
Total stockholders’ equity |
5,000,002 | 23,676 | ||||||
|
|
|
|
|||||
Total Liabilities and Stockholders’ Equity |
$ |
407,184,310 |
$ |
385,240 |
||||
|
|
|
|
(1) |
This number includes up to 1,350,000 shares of common stock subject to forfeiture if the over-allotment option was not exercised in full or in part by the underwriters as of December 31, 2019. On September 18, 2020, the underwriters partially exercised the over-allotment option to purchase an additional 4,423,453 Units; thus, only 244,137 Class B common stock were forfeited accordingly. (see Note 5) |
For The Year Ended December 31, 2020 (As Restated) |
For the period from November 14, 2019 (inception) through December 31, 2019 |
|||||||
General and administrative expenses |
$ | 138,416 | $ | 759 | ||||
Administrative expenses—related party |
35,668 | — | ||||||
Franchise tax expense |
200,276 | 565 | ||||||
|
|
|
|
|||||
Loss from operations |
(374,360 | ) | (1,324 | ) | ||||
Other income (expense) |
||||||||
Change in fair value of derivative liabilities |
(26,329,220 | ) | — | |||||
Offering costs associated with derivative liabilities |
(554,430 | ) | ||||||
Net gain from investments held in Trust Account |
168,786 | — | ||||||
|
|
|
|
|||||
Net loss |
$ | (27,089,224 | ) | $ | (1,324 | ) | ||
|
|
|
|
|||||
Weighted average shares outstanding of Class A common stock |
40,058,214 | — | ||||||
|
|
|
|
|||||
Basic and diluted net income per share |
$ | — | $ | — | ||||
|
|
|
|
|||||
Weighted average shares outstanding of Class B common stock |
9,302,148 | (1) |
9,000,000 | (1) | ||||
|
|
|
|
|||||
Basic and diluted net loss per share |
$ | (2.91 | ) | $ | (0.00 | ) | ||
|
|
|
|
(1) |
This number excludes up to 1,350,000 shares of common stock subject to forfeiture if the over-allotment option was not exercised in full or in part by the underwriters. On September 18, 2020, the underwriters partially exercised the over-allotment option to purchase an additional 4,423,453 Units; thus, only 244,137 Class B common stock were forfeited accordingly. (see Note 5) |
For the Year Ended December 31, 2020 (As Restated) |
||||||||||||||||||||||||||||
Common Stock |
Total Stockholders’ Equity |
|||||||||||||||||||||||||||
Class A |
Class B |
Additional Paid-In Capital |
Accumulated Deficit |
|||||||||||||||||||||||||
Shares |
Amount |
Shares |
Amount |
|||||||||||||||||||||||||
Balance—December 31, 2019 |
— |
$ |
— |
10,350,000 |
$ |
1,035 |
$ |
23,965 |
$ |
(1,324 |
) |
$ |
23,676 |
|||||||||||||||
Sale of units in initial public offering, less allocation to derivative liabilities |
40,423,453 | 4,042 | — | — | 390,390,884 | — | 390,394,926 | |||||||||||||||||||||
Offering costs |
— | — | — | — | (25,122,201 | ) | — | (25,122,201 | ) | |||||||||||||||||||
Private placement proceeds paid by Sponsor in excess of initial fair value of private placement warrants |
— | — | — | — | 2,933,225 | — | 2,933,225 | |||||||||||||||||||||
Class B common stock forfeited |
— | — | (244,137 | ) | (24 | ) | 24 | — | — | |||||||||||||||||||
Fair value of derivative liabilities issued in initial public offering and private placement |
— | — | — | — | — | — | — | |||||||||||||||||||||
Class A common stock subject to possible redemption |
(33,614,040 | ) | (3,361 | ) | — | — | (336,137,039 | ) | — | (336,140,400 | ) | |||||||||||||||||
Net loss |
— | — | — | — | — | (27,089,224 | ) | (27,089,224 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Balance—December 31, 2020 |
6,809,413 |
$ |
681 |
10,105,863 |
$ |
1,011 |
$ |
32,088,858 |
$ |
(27,090,548 |
) |
$ |
5,000,002 |
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) |
This number includes up to 1,350,000 shares of common stock subject to forfeiture if the over-allotment option was not exercised in full or in part by the underwriters as of December 31, 2019. On September 18, 2020, the underwriters partially exercised the over-allotment option to purchase an additional 4,423,453 Units; thus, only 244,137 Class B common stock were forfeited accordingly. (see Note 5) |
For the period from November 14, 2019 (inception) through December 31, 2019 |
||||||||||||||||||||||||||||
Common Stock |
Total Stockholders’ Equity |
|||||||||||||||||||||||||||
Class A |
Class B |
Additional Paid-In Capital |
Accumulated Deficit |
|||||||||||||||||||||||||
Shares |
Amount |
Shares |
Amount |
|||||||||||||||||||||||||
Balance—November 14, 2019 (inception) |
— |
$ |
— |
— |
$ |
— |
$ |
— |
$ |
— |
$ |
— |
||||||||||||||||
Issuance of Class B common stock to Sponsor (1) |
— | — | 10,350,000 | 1,035 | 23,965 | — | 25,000 | |||||||||||||||||||||
Net loss |
— | — | — | — | — | (1,324 | ) | (1,324 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Balance—December 31, 2019 |
— |
$ |
— |
10,350,000 |
$ |
1,035 |
$ |
23,965 |
$ |
(1,324 |
) |
$ |
23,676 |
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For The Year Ended December 31, 2020 (As Restated) |
For The Period From November 14, 2019 (inception) through December 31, 2019 |
|||||||
Cash Flows from Operating Activities: |
||||||||
Net loss |
$ | (27,089,224 | ) | $ | (1,324 | ) | ||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |
||||||||
Change in fair value of derivative liabilities |
26,329,220 | — | ||||||
Offering costs associated with derivative liabilities |
554,430 | — | ||||||
Net gain from investments held in Trust Account |
(168,786 | ) | — | |||||
Changes in operating assets and liabilities: |
||||||||
Prepaid expenses |
(223,840 | ) | — | |||||
Accounts payable |
620 | 760 | ||||||
Franchise tax payable |
200,276 | 565 | ||||||
|
|
|
|
|||||
Net cash provided by (used in) operating activities |
(397,304 | ) | 1 | |||||
|
|
|
|
|||||
Cash Flows from Investing Activities |
||||||||
Cash deposited in Trust Account |
(404,234,530 | ) | — | |||||
|
|
|
|
|||||
Net cash used in investing activities |
(404,234,530 | ) | — | |||||
|
|
|
|
|||||
Cash Flows from Financing Activities: |
||||||||
Proceeds from issuance of Class B common stock to Sponsor |
— | 25,000 | ||||||
Proceeds from note payable to related parties |
41,500 | 100,000 | ||||||
Repayment of note payable to related party |
(141,500 | ) | — | |||||
Proceeds received from initial public offering, gross |
404,234,530 | — | ||||||
Proceeds received from private placement |
10,084,691 | — | ||||||
Offering costs paid |
(7,102,984 | ) | (52,250 | ) | ||||
|
|
|
|
|||||
Net cash provided by financing activities |
407,116,237 | 72,750 | ||||||
|
|
|
|
|||||
Net change in cash |
2,484,403 | 72,751 | ||||||
Cash—beginning of the period |
72,751 | — | ||||||
|
|
|
|
|||||
Cash—end of the period |
$ |
2,557,154 |
$ |
72,751 |
||||
|
|
|
|
|||||
Supplemental disclosure of noncash financing activities: |
||||||||
Offering costs included in accounts payable |
$ | 7,666 | $ | 253,177 | ||||
Offering costs included in accrued expenses |
$ | 70,000 | $ | — | ||||
Offering costs funded with note payable |
$ | 7,062 | $ | 7,062 | ||||
Deferred underwriting commissions in connection with the initial public offering |
$ | 18,190,554 | $ | — | ||||
Deferred legal fees |
$ | 250,000 | $ | — | ||||
Initial value of Class A common stock subject to possible redemption |
$ | 317,537,880 | $ | — | ||||
Change in initial value of Class A common stock subject to possible redemption |
$ | 18,602,520 | $ | — | ||||
Forfeiture of Class B common stock |
$ | 24 | $ | — |
As of December 31, 2020 |
||||||||||||
As Previously Reported |
Restatement Adjustment |
As Restated |
||||||||||
Balance Sheet |
||||||||||||
Total assets |
$ | 407,184,310 | $ | — | $ | 407,184,310 | ||||||
|
|
|
|
|
|
|||||||
Liabilities and stockholders’ equity |
||||||||||||
Total current liabilities |
$ | 283,064 | $ | — | $ | 283,064 | ||||||
Deferred legal fees |
250,000 | 250,000 | ||||||||||
Deferred underwriting commissions |
18,190,554 | — | 18,190,554 | |||||||||
Derivative liabilities |
— | 47,320,290 | 47,320,290 | |||||||||
|
|
|
|
|
|
|||||||
Total liabilities |
18,723,618 | 47,320,290 | 66,043,908 | |||||||||
Class A common stock, $0.0001 par value; shares subject to possible redemption |
383,460,690 | (47,320,290 | ) | 336,140,400 | ||||||||
Stockholders’ equity |
||||||||||||
Preferred stock—$0.0001 par value |
— | — | — | |||||||||
Class A common stock—$0.0001 par value |
208 | 473 | 681 | |||||||||
Class B common stock—$0.0001 par value |
1,011 | — | 1,011 | |||||||||
Additional paid-in-capital |
5,205,681 | 26,883,177 | 32,088,858 | |||||||||
Accumulated deficit |
(206,898 | ) | (26,883,650 | ) | (27,090,548 | ) | ||||||
|
|
|
|
|
|
|||||||
Total stockholders’ equity |
5,000,002 | — | 5,000,002 | |||||||||
|
|
|
|
|
|
|||||||
Total liabilities and stockholders’ equity |
$ | 407,184,310 | $ | — | $ | 407,184,310 | ||||||
|
|
|
|
|
|
For The Year Ended December 31, 2020 |
||||||||||||
As Previously Reported |
Restatement Adjustment |
As Restated |
||||||||||
Statement of Operations |
||||||||||||
Loss from operations |
$ | (374,360 | ) | $ | — | $ | (374,360 | ) | ||||
Other (expense) income: |
||||||||||||
Change in fair value of derivative warrant liabilities |
— | (26,329,220 | ) | (26,329,220 | ) | |||||||
Financing costs |
— | (554,430 | ) | (554,430 | ) | |||||||
Net gain on investments held in Trust Account |
168,786 | — | 168,786 | |||||||||
|
|
|
|
|
|
|||||||
Total other (expense) income |
168,786 | (26,883,650 | ) | (26,714,864 | ) | |||||||
|
|
|
|
|
|
|||||||
Net loss |
$ | (205,574 | ) | $ | (26,883,650 | ) | $ | (27,089,224 | ) | |||
|
|
|
|
|
|
|||||||
Basic and Diluted weighted-average Class A common stock outstanding |
40,058,214 | — | 40,058,214 | |||||||||
Basic and Diluted net loss per Class A share |
$ | — | — | $ | — | |||||||
Basic and Diluted weighted-average Class B common stock outstanding |
9,302,148 | — | 9,302,148 | |||||||||
Basic and Diluted net loss per Class B share |
$ | (0.02 | ) | — | $ | (2.64 | ) |
• | Level 1, defined as observable inputs such as quoted prices (unadjusted) for identical instruments in active markets; |
• | Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable such as quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active; and |
• | Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions, such as valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. |
• | in whole and not in part; |
• | at a price of $0.01 per warrant; |
• | upon a minimum of 30 days’ prior written notice of redemption; and |
• | if, and only if, the closing price of the Class A common stock equals or exceeds $18.00 per share on each of 20 trading days within the 30-trading day period ending on the third trading day prior to the date on which the Company sends the notice of redemption to the warrant holders. |
• | in whole and not in part; |
• | at $0.10 per warrant upon a minimum of 30 days’ prior written notice of redemption, provided that holders will be able to exercise their warrants prior to redemption and receive that number of shares of |
Class A common stock determined by reference to an agreed table described in the warrant agreement, based on the redemption date and the “fair market value” of the Class A common stock except as otherwise described below; |
• | if, and only if, the last sale price of the Class A common stock equals or exceeds $10.00 per share (as adjusted for stock splits, stock dividends, reorganizations, recapitalizations and the like) on the trading day prior to the date on which the Company sends the notice of redemption to the warrantholders; |
• | if, and only if, the Private Placement Warrants and the private placement warrants to be issued pursuant to the forward purchase agreement are also concurrently exchanged at the same price (equal to a number of shares of Class A common stock) as the outstanding Public Warrants, as described above; and |
• | if and only if, there is an effective registration statement covering the issuance of the shares of Class A common stock issuable upon exercise of the warrants and a current prospectus relating thereto available throughout the 30-day period after written notice of redemption is given, or an exemption from registration is available. |
Description |
Quoted Prices in Active Markets (Level 1) |
Significant Other Observable Inputs (Level 2) |
Significant Other Unobservable Inputs (Level 3) |
|||||||||
Assets: |
||||||||||||
Investments held in Trust Account: |
||||||||||||
U.S. Treasury Securities (1) |
$ | 404,400,376 | $ | — | $ | — | ||||||
Liabilities: |
||||||||||||
Derivative warrant liabilities |
$ | 13,272,368 | $ | — | $ | 27,244,372 | ||||||
Forward purchase agreement |
$ | $ | — | $ | 6,803,550 |
(1) |
Excludes $2,940 of cash held in the Trust Account as of December 31, 2020. |
As of December 31, 2020 |
||||
Warrants: |
||||
Option term (in years) |
5.6 | |||
Volatility |
27.00% | |||
Risk-free interest rate |
0.45% | |||
Expected dividends |
— | |||
Stock price |
$10.06 | |||
Forward purchase agreement: |
||||
Expected term |
0.6 | |||
Risk-free interest rate |
0.09% | |||
Stock price |
$10.06 |
December 31, 2020 |
||||
Deferred tax assets: |
||||
Start-up/Organization costs |
$ | 6,596 | ||
Net operating loss carryforwards |
36,574 | |||
|
|
|||
Total deferred tax assets |
43,170 | |||
Valuation allowance |
(43,170 | ) | ||
|
|
|||
Deferred tax asset, net of allowance |
$ | — | ||
|
|
Statutory Federal income tax rate |
21.0 | % | ||
Change in fair value of derivative liabilities |
(20.4 | )% | ||
Financing costs for derivative liabilities |
(0.4 | )% | ||
Change in Valuation Allowance |
(0.2 | )% | ||
|
|
|||
Income Taxes Benefit |
0.0 | % | ||
|
|
As of September 30, 2020 |
||||||||||||
As Previously Reported |
Restatement Adjustment |
As Restated |
||||||||||
Balance Sheet |
||||||||||||
Total assets |
$ | 407,194,144 | $ | — | $ | 407,194,144 | ||||||
|
|
|
|
|
|
|||||||
Liabilities and stockholders’ equity |
||||||||||||
Total current liabilities |
$ | 263,065 | $ | — | $ | 263,065 | ||||||
Deferred legal fees |
250,000 | $ | — | 250,000 | ||||||||
Deferred underwriting commissions |
18,190,554 | — | 18,190,554 | |||||||||
Derivative liabilities |
— | 26,272,850 | 26,272,850 | |||||||||
|
|
|
|
|
|
|||||||
Total liabilities |
18,703,619 | 26,272,850 | 44,976,469 | |||||||||
Class A common stock, $0.0001 par value; shares subject to possible redemption |
383,490,520 | (26,272,850 | ) | 357,217,670 | ||||||||
Stockholders’ equity |
||||||||||||
Preferred stock—$0.0001 par value |
— | — | — | |||||||||
Class A common stock—$0.0001 par value |
207 | 263 | 470 | |||||||||
Class B common stock—$0.0001 par value |
1,011 | — | 1,011 | |||||||||
Additional paid-in-capital |
5,175,852 | 5,835,947 | 11,011,799 | |||||||||
Accumulated deficit |
(177,065 | ) | (5,836,210 | ) | (6,013,275 | ) | ||||||
|
|
|
|
|
|
|||||||
Total stockholders’ equity |
5,000,005 | — | 5,000,005 | |||||||||
|
|
|
|
|
|
|||||||
Total liabilities and stockholders’ equity |
$ | 407,194,144 | $ | — | $ | 407,194,144 | ||||||
|
|
|
|
|
|
Three Months Ended September 30, 2020 |
||||||||||||
As Previously Reported |
Restatement Adjustment |
As Restated |
||||||||||
Unaudited Condensed Statement of Operations |
||||||||||||
Loss from operations |
$ | (200,738 | ) | $ | — | $ | (200,738 | ) | ||||
Other (expense) income: |
||||||||||||
Change in fair value of derivative warrant liabilities |
— | (5,281,780 | ) | (5,281,780 | ) | |||||||
Financing costs |
— | (554,430 | ) | (554,430 | ) | |||||||
Net gain on investments held in Trust Account |
27,226 | — | 27,226 | |||||||||
|
|
|
|
|
|
|||||||
Total other (expense) income |
27,226 | (5,836,210 | ) | (5,808,984 | ) | |||||||
|
|
|
|
|
|
|||||||
Net loss |
$ | (173,512 | ) | $ | (5,836,210 | ) | $ | (6,009,722 | ) | |||
|
|
|
|
|
|
|||||||
Basic and Diluted weighted-average Class A common stock outstanding |
38,081,625 | 38,081,625 | ||||||||||
Basic and Diluted net loss per Class A share |
$ | — | $ | — | ||||||||
Basic and Diluted weighted-average Class B common stock outstanding |
10,105,863 | 10,105,863 | ||||||||||
Basic and Diluted net loss per Class B share |
$ | (0.02 | ) | $ | (0.59 | ) |
Nine Months Ended September 30, 2020 |
||||||||||||
As Previously Reported |
Restatement Adjustment |
As Restated |
||||||||||
Unaudited Condensed Statement of Operations |
||||||||||||
Loss from operations |
$ | (202,967 | ) | $ | — | $ | (202,967 | ) | ||||
Other (expense) income: |
||||||||||||
Change in fair value of warrant liabilities |
— | (5,281,780 | ) | (5,281,780 | ) | |||||||
Financing costs |
— | (554,430 | ) | (554,430 | ) | |||||||
Net gain on investments held in Trust Account |
27,226 | — | 27,226 | |||||||||
|
|
|
|
|
|
|||||||
Total other (expense) income |
27,226 | (5,836,210 | ) | (5,808,984 | ) | |||||||
|
|
|
|
|
|
|||||||
Net loss |
$ | (175,741 | ) | $ | (5,836,210 | ) | $ | (6,011,951 | ) | |||
|
|
|
|
|
|
|||||||
Basic and Diluted weighted-average Class A common stock outstanding |
38,081,625 | — | 38,081,625 | |||||||||
Basic and Diluted net loss per Class A share |
$ | — | — | $ | — | |||||||
Basic and Diluted weighted-average Class B common stock outstanding |
10,105,863 | — | 10,105,863 | |||||||||
Basic and Diluted net loss per Class B share |
$ | (0.02 | ) | — | $ | (0.35 | ) |
June 30, 2021 |
December 31, 2020 |
|||||||
Assets: |
||||||||
Current assets: |
||||||||
Cash |
$ | $ | ||||||
Accounts receivable, net of allowance of $ |
||||||||
Prepaid and other current assets |
||||||||
Due from affiliates (Note 16) |
— | |||||||
|
|
|
|
|||||
Total current assets |
||||||||
Property and equipment, net |
||||||||
Goodwill |
||||||||
Intangible assets, net |
||||||||
Other assets |
||||||||
|
|
|
|
|||||
Total assets |
$ | $ | ||||||
|
|
|
|
|||||
Liabilities and shareholder’s equity: |
||||||||
Current liabilities: |
||||||||
Accounts payable |
$ | $ | ||||||
Accrued expenses |
||||||||
Due to affiliates (Note 16) |
— | |||||||
Current portion of long-term debt, capital leases and other financing obligations |
||||||||
Deferred revenue |
||||||||
Other current liabilities |
||||||||
|
|
|
|
|||||
Total current liabilities |
||||||||
Long-term debt, net of current portion |
||||||||
Capital leases and other financing obligations, net of current portion |
||||||||
Deferred income taxes |
||||||||
Other liabilities |
||||||||
|
|
|
|
|||||
Total liabilities |
||||||||
|
|
|
|
|||||
Commitments and contingencies (Note 14) |
||||||||
Shareholder’s equity: |
||||||||
Common shares, $ |
||||||||
Additional paid-in capital |
||||||||
Accumulated other comprehensive income |
||||||||
Accumulated deficit |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Total shareholder’s equity |
||||||||
|
|
|
|
|||||
Total liabilities and shareholder’s equity |
$ | $ | ||||||
|
|
|
|
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
2021 |
2020 |
2021 |
2020 |
|||||||||||||
Revenues |
$ | $ | $ | $ | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Operating costs and expenses: |
||||||||||||||||
Cost of revenues, excluding depreciation and amortization |
||||||||||||||||
Selling, general and administrative expenses |
||||||||||||||||
Depreciation and amortization |
||||||||||||||||
Restructuring, impairment, site closures and related costs (Note 4) |
— | — | ||||||||||||||
Impairment of notes receivable and other amounts due from affiliate (Note 16) |
— | — | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total operating costs and expenses |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Loss from operations |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Interest expense, net |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Other expenses, net |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Loss from operations before income taxes |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||
Income tax benefit (expense) |
( |
) | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Net loss |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
2021 |
2020 |
2021 |
2020 |
|||||||||||||
Net loss |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||
|
|
|
|
|
|
|
|
|||||||||
Other comprehensive income (loss): |
||||||||||||||||
Foreign currency translation adjustment |
( |
) | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Other comprehensive income (loss) |
( |
) | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Comprehensive loss |
$ | ( |
) | $ | ( |
) | $ | ( |
) | $ | ( |
) | ||||
|
|
|
|
|
|
|
|
Common shares |
Additional paid-in capital |
Accumulated other comprehensive income (loss) |
Accumulated deficit |
Total shareholder’s equity |
||||||||||||||||||||
Share |
Amount |
|||||||||||||||||||||||
Balance as of December 31, 2020 |
$ | $ | $ | $ | ( |
) | $ | |||||||||||||||||
Equity-based compensation |
— | — | — | — | ||||||||||||||||||||
Capital redemption |
( |
) | — | ( |
) | — | — | ( |
) | |||||||||||||||
Net loss |
— | — | — | — | ( |
) | ( |
) | ||||||||||||||||
Other comprehensive income |
— | — | — | — | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Balance as of March 31, 2021 |
$ | $ | $ | $ | ( |
) | $ | |||||||||||||||||
Equity-based compensation |
— | — | — | — | ||||||||||||||||||||
Net loss |
— | — | — | — | ( |
) | ( |
) | ||||||||||||||||
Other comprehensive income |
— | — | — | — | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Balance as of June 30, 2021 |
$ | $ | $ | $ | ( |
) | $ | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Balance as of December 31, 2019 |
$ | $ | $ | $ | ( |
) | $ | |||||||||||||||||
Equity-based compensation |
— | — | — | — | ||||||||||||||||||||
Net loss |
— | — | — | — | ( |
) | ( |
) | ||||||||||||||||
Other comprehensive income |
— | — | — | ( |
) | — | ( |
) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Balance as of March 31, 2020 |
$ | $ | $ | ( |
) | $ | ( |
) | $ | |||||||||||||||
Equity-based compensation |
— | — | — | — | ||||||||||||||||||||
Net loss |
— | — | — | — | ( |
) | ( |
) | ||||||||||||||||
Other comprehensive income |
— | — | — | — | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Balance as of June 30, 2020 |
$ | $ | $ | ( |
) | $ | ( |
) | $ | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended June 30, |
||||||||
2021 |
2020 |
|||||||
Net loss |
$ | ( |
) | $ | ( |
) | ||
Cash flows from operating activities: |
||||||||
Adjustments to reconcile net loss to net cash provided by operating activities: |
||||||||
Depreciation and amortization |
||||||||
Restructuring, impairment, site closures and related costs |
— | |||||||
Amortization of favorable/unfavorable leasehold interests, net |
||||||||
Amortization of debt issuance costs and fees, net |
||||||||
Impairment of notes receivable and other amounts due from affiliate (Note 16) |
— | |||||||
Equity-based compensation |
||||||||
Bad debt expense (recoveries), net |
( |
) | ( |
) | ||||
Deferred income taxes |
( |
) | ( |
) | ||||
Non-cash interest expense, net |
||||||||
Changes in operating assets and liabilities, excluding impact of acquisitions and dispositions: |
||||||||
Accounts receivable |
||||||||
Prepaid and other current assets |
||||||||
Other assets |
( |
) | ||||||
Accounts payable |
( |
) | ( |
) | ||||
Accrued expenses |
( |
) | ||||||
Due to affiliates |
( |
) | — | |||||
Other liabilities |
||||||||
|
|
|
|
|||||
Net cash provided by operating activities |
||||||||
|
|
|
|
|||||
Cash flows from investing activities: |
||||||||
Purchases of property and equipment |
( |
) | ( |
) | ||||
Amounts received from (advanced to) affiliate (Note 16) |
( |
) | ||||||
|
|
|
|
|||||
Net cash provided by (used in) investing activities |
( |
) | ||||||
|
|
|
|
|||||
Cash flows from financing activities: |
||||||||
Proceeds from issuance of long-term debt and other financing obligations |
— | |||||||
Proceeds from sale-leaseback transaction |
— | |||||||
Repayment of long-term debt |
( |
) | ( |
) | ||||
Repayment of capital leases and other financing obligations |
( |
) | ( |
) | ||||
Capital redemption |
( |
) | ||||||
|
|
|
|
|||||
Net cash (used in) provided by financing activities |
( |
) | ||||||
|
|
|
|
|||||
Effect of foreign currency exchange rates on cash |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Net (decrease) increase in cash |
( |
) | ||||||
Cash at beginning of period |
||||||||
|
|
|
|
|||||
Cash at end of period |
$ | $ | ||||||
|
|
|
|
|||||
Supplemental cash flow information: |
||||||||
Cash paid for income taxes, net of refunds |
$ | $ | ||||||
|
|
|
|
|||||
Cash paid for interest |
$ | $ | ||||||
|
|
|
|
|||||
Non-cash purchases of property and equipment |
$ | $ | ||||||
|
|
|
|
Six Months Ended June 30, 2021 |
||||
Beginning balance |
$ | |||
Lease termination costs |
||||
Reclassification of deferred rent credits |
||||
Accretion |
||||
Payments |
( |
) | ||
|
|
|||
Ending balance |
$ | |||
|
|
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
2021 |
2020 |
2021 |
2020 |
|||||||||||||
Recurring revenue |
$ | $ | $ | $ | ||||||||||||
Non-recurring revenues |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
$ | $ | $ | $ | ||||||||||||
|
|
|
|
|
|
|
|
Receivables |
Contract asset, current |
Contract asset, non- current |
Deferred revenue, current |
Deferred revenue, non-current |
||||||||||||||||
Closing balances as of December 31, 2019 |
$ |
$ |
$ |
$ |
$ |
|||||||||||||||
Net increase (decrease) during the three months ended March 31, 2020 |
( |
) | ( |
) | ( |
) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Closing balances as of March 31, 2020 |
||||||||||||||||||||
Net increase (decrease) during the three months ended June 30, 2020 |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Closing balances as of June 30, 2020 |
$ |
$ |
$ |
$ |
$ |
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Closing balances as of December 31, 2020 |
$ | $ | $ | $ | $ | |||||||||||||||
Net (decrease) increase during the three months ended March 31, 2021 |
( |
) | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Closing balances as of March 31, 2021 |
||||||||||||||||||||
Net (decrease) increase during the three months ended June 30, 2021 |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Closing balances as of June 30, 2021 |
$ |
$ |
$ |
$ |
$ |
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
June 30, 2021 |
December 31, 2020 |
|||||||
Beginning balance |
$ | $ | ||||||
Write offs |
— | ( |
) | |||||
Reversal of allowance for doubtful accounts |
( |
) | ( |
) | ||||
Foreign currency translation |
( |
) | ||||||
Ending balance |
$ | $ | ||||||
June 30, 2021 |
December 31, 2020 |
|||||||
Contract asset, current |
$ | $ | ||||||
Prepaid expenses |
||||||||
Value added tax (“VAT”) receivable |
— | |||||||
Other current assets |
||||||||
Total prepaid and other current assets |
$ | $ | ||||||
June 30, 2021 |
December 31, 2020 |
|||||||||||||||||||||||
Gross |
Accumulated Amortization |
Net |
Gross |
Accumulated Amortization |
Net |
|||||||||||||||||||
Customer relationships |
$ | $ | ( |
) | $ | $ | $ | ( |
) | $ | ||||||||||||||
Favorable leasehold interests |
( |
) | ( |
) | ||||||||||||||||||||
Developed technology |
( |
) | — | ( |
) | — | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total intangibles |
$ | $ | ( |
) | $ | $ | $ | ( |
) | $ | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
For the years ending December 31: |
||||
Remaining 2021 |
$ | |||
2022 |
||||
2023 |
||||
2024 |
||||
2025 |
||||
Thereafter |
||||
|
|
|||
Total amortization expense |
$ | |||
|
|
June 30, 2021 |
December 31, 2020 |
|||||||||||||||
Carrying value |
Fair value |
Carrying value |
Fair value |
|||||||||||||
2017 First Lien Term Facility |
$ | $ | $ | $ | ||||||||||||
2019 First Lien Term Facility |
||||||||||||||||
2017 Second Lien Term Facility |
||||||||||||||||
Revolving Facility |
||||||||||||||||
2021 Revolving Facility |
For the years ending December 31: |
||||
Remaining 2021 |
||||
2022 |
||||
2023 |
||||
2024 |
||||
2025 |
||||
Thereafter |
||||
|
|
|||
Total minimum lease payments |
||||
Less: amount representing interest |
( |
) | ||
|
|
|||
Present value of net minimum lease payments |
||||
Less: current portion |
( |
) | ||
|
|
|||
Capital leases, net of current portion |
$ | |||
|
|
For the years ending December 31: | Lease receipts |
Lease commitments (1) |
||||||
Remaining 2021 |
$ | $ | ||||||
2022 |
||||||||
2023 |
||||||||
2024 |
||||||||
2025 |
||||||||
Thereafter |
||||||||
|
|
|
|
|||||
Total minimum lease receipts / payments |
$ | $ | ||||||
|
|
|
|
(1) |
Minimum lease payments have not been reduced by minimum sublease rentals of $ non-cancelable subleases. |
June 30, 2021 |
December 31, 2020 |
|||||||
2017 First Lien Term Facility due May 2024 |
$ | $ | ||||||
2019 First Lien Term Facility due May 2024 |
||||||||
2017 Second Lien Term Facility due May 2025 |
||||||||
Revolving Facility due May 2022 |
||||||||
Revolving Facility due Nov 2023 |
— | |||||||
Less: unamortized debt issuance costs |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Less: current maturities of long-term debt |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Long-term debt, net of current portion |
$ | $ | ||||||
|
|
|
|
For the years ending December 31: | Principal amount |
|||
Remaining 2021 |
$ | |||
2022 |
||||
2023 |
||||
2024 |
||||
2025 |
||||
|
|
|||
Total |
$ | |||
|
|
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Interest expense on debt, net of capitalized interest |
$ | $ | $ | $ | ||||||||||||
Interest expense on capital leases |
||||||||||||||||
Amortization of deferred financing costs and fees |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
$ | $ | $ | $ | ||||||||||||
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Cost of revenues, excluding depreciation and amortization |
$ | $ | $ | $ | ||||||||||||
Selling, general and administrative expenses |
||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total |
$ | $ | $ | $ | ||||||||||||
|
|
|
|
|
|
|
|
• | Cyxtera Management Inc. transition services agreement |
• | Promissory Notes |
June 30, 2021 |
December 31, 2020 |
|||||||
Beginning balance |
$ | $ | ||||||
Provision for loan losses |
— | |||||||
Reversal of allowance |
— | ( |
) | |||||
|
|
|
|
|||||
Net reversal of allowance for loan losses |
— | ( |
) | |||||
|
|
|
|
|||||
Write offs |
( |
) | — | |||||
|
|
|
|
|||||
Ending balance |
$ | $ | ||||||
|
|
|
|
• | Service provider management consulting fee and structuring fee |
• | Sponsor’s investment in the First Lien Term Facility and the Second Lien Term Facility |
• | Relationships with certain members of the Company’s board of directors |
Three Months Ended June 30, |
Six Months Ended June 30, |
|||||||||||||||
2021 |
2020 |
2021 |
2020 |
|||||||||||||
Revenues (1) |
$ | $ | $ | $ | ||||||||||||
Selling, general and administrative expenses (2) |
— | ( |
) | ( |
) | ( |
) | |||||||||
Impairment of notes receivable and other amounts due from affiliate (3) |
— | — | ||||||||||||||
Other income, net (4) |
(1) |
Revenues for the three and six months ended June 30, 2021 and 2020 include amounts recognized from contracts with Appgate, Brainspace Corporation, and Presidio. Brainspace Corporation was an affiliate of the Company and an indirect subsidiary of SIS through January 20, 2021. |
(2) |
Selling, general and administrative expenses include amounts incurred under the Transition Services Agreement. Where applicable, no amount appears in the table due to rounding convention. |
(3) |
Includes impairment recognized in connection with amounts funded under the Promissory Notes and $ |
(4) |
Includes net income recognized under the Transition Services Agreement for the three and six months ended June 30, 2021 and 2020 . |
June 30, 2021 |
December 31, 2020 |
|||||||
Accounts receivable (1) |
$ | — | $ | |||||
Due from affiliates (2) |
— | |||||||
Accounts payable (3) |
||||||||
Accrued expenses (4) |
||||||||
Due to affiliates (5) |
— |
(1) |
Accounts receivable at December 31, 2020 include amounts due from Appgate under the Transition Services Agreement, and trade receivables due from Appgate and Brainspace Corporation. Where applicable, no amount appears in the table due to rounding convention. |
(2) |
Due from affiliates at December 31, 2020 includes amounts due from Appgate under the Promissory Notes. |
(3) |
Accounts payable at June 30, 2021 and December 31, 2020 include amounts due to Appgate under the Transition Services Agreement, and trade payables due to Appgate. |
(4) |
Accrued expenses at June 30, 2021 and December 31, 2020 include board fees owed to the independent directors of the Company. |
(5) |
Due to affiliates at December 31, 2020 includes amounts owed under the Services Agreement. |
2020 | 2019 | |||||||
Assets: |
||||||||
Current assets: |
||||||||
Cash |
$ | $ | ||||||
Accounts receivable, net of allowance of $ |
||||||||
Prepaid and other current assets |
||||||||
Due from affiliates (Note 20) |
— | |||||||
|
|
|
|
|||||
Total current assets |
||||||||
Property, plant and equipment, net |
||||||||
Goodwill |
||||||||
Intangible assets, net |
||||||||
Other assets |
||||||||
|
|
|
|
|||||
Total assets |
$ | $ | ||||||
|
|
|
|
|||||
Liabilities and shareholder’s equity: |
||||||||
Current liabilities: |
||||||||
Accounts payable |
$ | $ | ||||||
Accrued expenses |
||||||||
Due to affiliates (Note 20) |
||||||||
Current portion of long-term debt, capital leases and other financing obligations |
||||||||
Deferred revenue |
||||||||
Other current liabilities |
||||||||
|
|
|
|
|||||
Total current liabilities |
||||||||
Long-term debt, net of current portion |
||||||||
Capital leases and other financing obligations, net of current portion |
||||||||
Deferred income taxes |
||||||||
Other liabilities |
||||||||
|
|
|
|
|||||
Total liabilities |
||||||||
|
|
|
|
|||||
Commitments and contingencies (Note 18) |
||||||||
Shareholder’s equity: |
||||||||
Common shares, $ |
||||||||
Additional paid-in capital |
||||||||
Accumulated other comprehensive income |
||||||||
Accumulated deficit |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Total shareholder’s equity |
||||||||
|
|
|
|
|||||
Total liabilities and shareholder’s equity |
$ | $ | ||||||
|
|
|
|
2020 | 2019 | 2018 | ||||||||||
Revenues |
$ | $ | $ | |||||||||
|
|
|
|
|
|
|||||||
Operating costs and expenses: |
||||||||||||
Cost of revenues, excluding depreciation and amortization |
||||||||||||
Selling, general and administrative expenses |
||||||||||||
Depreciation and amortization |
||||||||||||
(Recovery) impairment of notes receivable from affiliate (Notes 3, 20 and 21) |
( |
) | — | |||||||||
Loss on asset sales |
— | — | ||||||||||
|
|
|
|
|
|
|||||||
Total operating costs and expenses |
||||||||||||
|
|
|
|
|
|
|||||||
Income (loss) from continuing operations |
( |
) | ( |
) | ||||||||
Interest expense, net |
( |
) | ( |
) | ( |
) | ||||||
Other expenses, net |
( |
) | ( |
) | ( |
) | ||||||
|
|
|
|
|
|
|||||||
Loss from continuing operations before income taxes |
( |
) | ( |
) | ( |
) | ||||||
Income tax (expense) benefit |
( |
) | ||||||||||
|
|
|
|
|
|
|||||||
Net loss from continuing operations |
( |
) | ( |
) | ( |
) | ||||||
|
|
|
|
|
|
|||||||
Net loss from discontinued operations, net of tax |
— | ( |
) | ( |
) | |||||||
|
|
|
|
|
|
|||||||
Net loss |
$ | ( |
) | $ | ( |
) | $ | ( |
) | |||
|
|
|
|
|
|
2020 | 2019 | 2018 | ||||||||||
Net loss |
$ | ( |
) | $ | ( |
) | $ | ( |
) | |||
|
|
|
|
|
|
|||||||
Other comprehensive income (loss): |
||||||||||||
Foreign currency translation adjustment |
( |
) | ||||||||||
|
|
|
|
|
|
|||||||
Other comprehensive income (loss) |
( |
) | ||||||||||
|
|
|
|
|
|
|||||||
Comprehensive loss |
$ | ( |
) | $ | ( |
) | $ | ( |
) | |||
|
|
|
|
|
|
Accumulated |
||||||||||||||||||||||||
Additional |
other |
Total |
||||||||||||||||||||||
Common shares |
paid-in |
comprehensive |
Accumulated |
shareholder’s |
||||||||||||||||||||
Share |
Amount |
capital |
income (loss) |
deficit |
equity |
|||||||||||||||||||
Balance as of December 31, 2017 |
$ | $ | $ | $ | ( |
) | $ | |||||||||||||||||
Equity-based compensation |
— | — | — | — | ||||||||||||||||||||
Capital contributions |
— | — | — | — | ||||||||||||||||||||
Net loss |
— | — | — | — | ( |
) | ( |
) | ||||||||||||||||
Other comprehensive loss |
— | — | — | ( |
) | — | ( |
) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Balance as of December 31, 2018 |
( |
) | ( |
) | ||||||||||||||||||||
Equity-based compensation |
— | — | — | — | ||||||||||||||||||||
Capital contributions |
— | — | — | — | ||||||||||||||||||||
Cybersecurity Spin-Off (Notes 1 and 3) |
( |
) | — | ( |
) | — | — | ( |
) | |||||||||||||||
Net loss |
— | — | — | — | ( |
) | ( |
) | ||||||||||||||||
Other comprehensive income |
— | — | — | — | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Balance as of December 31, 2019 |
$ | $ | $ | $ | ( |
) | $ | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Equity-based compensation |
— | — | — | — | ||||||||||||||||||||
Cybersecurity Spin-Off (Notes 1 and 3) |
— | — | — | — | ||||||||||||||||||||
Net loss |
— | — | — | — | ( |
) | ( |
) | ||||||||||||||||
Other comprehensive income |
— | — | — | — | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Balance as of December 31, 2020 |
$ | $ | $ | $ | ( |
) | $ | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
2020 | 2019 | 2018 | ||||||||||
Net loss |
$ | ( |
) | $ | ( |
) | $ | ( |
) | |||
Net loss from discontinued operations, net of tax |
— | |||||||||||
Cash flows from operating activities: |
||||||||||||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |
||||||||||||
Depreciation and amortization |
||||||||||||
Amortization of favorable/unfavorable leasehold interests, net |
||||||||||||
Amortization of debt issuance costs and fees, net |
||||||||||||
(Recovery) impairment of notes receivable from affiliate (Notes 3, 20 and 21) |
( |
) | — | |||||||||
Equity-based compensation |
||||||||||||
(Recoveries) bad debt expense, net |
( |
) | ||||||||||
Loss on asset sales |
— | — | ||||||||||
Deferred income taxes |
( |
) | ( |
) | ||||||||
Non-cash interest expense, net |
— | |||||||||||
Changes in operating assets and liabilities, excluding impact of acquisitions and dispositions: |
||||||||||||
Accounts receivable |
( |
) | ||||||||||
Prepaid and other current assets |
( |
) | ( |
) | ||||||||
Due from affiliates |
— | ( |
) | |||||||||
Other assets |
( |
) | ||||||||||
Accounts payable |
( |
) | ( |
) | ( |
) | ||||||
Accrued expenses |
( |
) | ||||||||||
Due to affiliates |
( |
) | ( |
) | — | |||||||
Other liabilities |
||||||||||||
Net cash provided by continuing operating activities |
||||||||||||
Net cash (used in) provided by operating activities of discontinued operations |
— | ( |
) | |||||||||
Net cash provided by (used in) operating activities |
( |
) | ||||||||||
Cash flows from investing activities: |
||||||||||||
Purchases of property, plant and equipment |
( |
) | ( |
) | ( |
) | ||||||
Proceeds from sale of assets |
— | — | ||||||||||
Amounts advanced to affiliate (Note 3) |
( |
) | ( |
) | — | |||||||
Net cash used in continuing investing activities |
( |
) | ( |
) | ( |
) | ||||||
Net cash used in investing activities of discontinued operations |
— | — | ( |
) | ||||||||
Net cash used in investing activities |
( |
) | ( |
) | ( |
) | ||||||
Cash flows from financing activities: |
||||||||||||
Proceeds from issuance of long-term debt and other financing obligations |
||||||||||||
Proceeds from capital contributions |
— | — | ||||||||||
Proceeds from sale-leaseback financing |
— | |||||||||||
Repayment of long-term debt |
( |
) | ( |
) | ( |
) | ||||||
Repayment of capital leases and other financing obligations |
( |
) | ( |
) | ( |
) | ||||||
Net cash provided by continuing financing activities |
||||||||||||
Net cash provided by financing activities of discontinuing operations |
— | — | ||||||||||
Net cash provided by financing activities |
||||||||||||
Effect of foreign currency exchange rates on cash |
( |
) | ||||||||||
Net increase (decrease) in cash |
( |
) | ( |
) | ||||||||
Cash at beginning of period |
||||||||||||
Cash at end of period |
||||||||||||
Less: Cash of discontinued operations |
— | |||||||||||
Cash of continuing operations at end of period |
$ | $ | $ | |||||||||
2020 | 2019 | 2018 | ||||||||||
Supplemental cash flow information: |
||||||||||||
Cash (refunds) paid for income taxes, net |
$ | $ | ( |
) | $ | |||||||
Cash paid for interest |
$ | $ | $ | |||||||||
Non-cash purchases of property, plant and equipment |
$ | $ | $ | |||||||||
Estimated useful | ||
Asset class |
lives (years) | |
Buildings |
||
Leasehold improvements |
||
Personal property |
Input level |
Description of input | |
Level 1 | Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. | |
Level 2 | Inputs other than quoted prices included in Level 1 that are observable for the asset or liability either directly or indirectly. | |
Level 3 | Unobservable inputs reflecting management’s own assumptions about the inputs used in pricing the asset or liability. |
2020 | ||||
Beginning balance |
$ | |||
Provision for loan losses |
||||
Reversal of allowance |
( |
) | ||
|
|
|||
Net reversal of allowance for loan losses |
( |
) | ||
|
|
|||
Ending balance |
$ | |||
|
|
2019 | 2018 | |||||||
Revenues |
$ | $ | ||||||
|
|
|
|
|||||
Operating costs and expenses: |
||||||||
Cost of revenues, excluding depreciation and amortization |
||||||||
Selling, general and administrative expenses |
||||||||
Depreciation and amortization |
||||||||
Loss on impairment of assets |
— | |||||||
|
|
|
|
|||||
Total operating costs and expenses |
||||||||
|
|
|
|
|||||
Loss from operations |
( |
) | ( |
) | ||||
Interest expense, net |
( |
) | ||||||
Other operating expenses, net |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Loss before income taxes |
( |
) | ( |
) | ||||
Income tax benefit |
||||||||
|
|
|
|
|||||
Loss from discontinued operations, net of tax |
$ | ( |
) | $ | ( |
) | ||
|
|
|
|
2019 | 2018 | |||||||
Income tax at U.S. federal statutory income tax rate |
$ | $ | ||||||
Goodwill impairment |
( |
) | — | |||||
State and local taxes, net of federal income tax benefit |
||||||||
Valuation allowance |
( |
) | ||||||
Equity-based compensation |
( |
) | ( |
) | ||||
Earnings of foreign subsidiaries |
( |
) | ( |
) | ||||
Tax Act reform |
( |
) | ||||||
Withholding taxes |
( |
) | ( |
) | ||||
NOL adjustment |
— | |||||||
Other |
( |
) | ||||||
|
|
|
|
|||||
Total income tax benefit on discontinued operations |
$ | $ | ||||||
|
|
|
|
2020 | 2019 | 2018 | ||||||||||
Recurring revenue |
$ | $ | $ | |||||||||
Non-recurring revenues |
||||||||||||
|
|
|
|
|
|
|||||||
Total |
$ | $ | $ | |||||||||
|
|
|
|
|
|
Receivables | Contract asset, current |
Contract asset, non -current |
Deferred revenue, current |
Deferred revenue, non -current |
||||||||||||||||
Beginning balances as of January 1, 2018 (1) |
$ | |||||||||||||||||||
Closing balances as of December 31, 2018 |
||||||||||||||||||||
Net increase during the year ended December 31, 2018 |
||||||||||||||||||||
Closing balances as of December 31, 2019 |
||||||||||||||||||||
Net (decrease) increase during the year ended December 31, 2019 |
( |
) | ( |
) | ||||||||||||||||
Closing balances as of December 31, 2020 |
||||||||||||||||||||
Net (decrease) increase during the year ended December 31, 2020 |
( |
) | ( |
) | ( |
) |
(1) | Represents adjusted balance upon retrospective adoption of ASC Topic 606 and recast for discontinued operations. |
2020 | 2019 | |||||||
Contract asset, current |
$ | $ | ||||||
Prepaid expenses |
||||||||
Value added tax (“VAT”) receivable |
||||||||
Other current assets |
||||||||
|
|
|
|
|||||
Total prepaid and other current assets |
$ | $ | ||||||
|
|
|
|
2020 | 2019 | |||||||
Land |
$ | $ | ||||||
Buildings |
||||||||
Leasehold improvements |
||||||||
Personal property |
||||||||
Construction in progress |
||||||||
|
|
|
|
|||||
Less: accumulated depreciation and amortization |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Property, plant and equipment, net |
$ | $ | ||||||
|
|
|
|
2020 | 2019 | |||||||||||||||||||||||
Gross | Accumulated Amortization |
Net | Gross | Accumulated Amortization |
Net | |||||||||||||||||||
Customer relationships |
$ | $ | ( |
) | $ | $ | $ | ( |
) | $ | ||||||||||||||
Favorable leasehold interests |
( |
) | ( |
) | ||||||||||||||||||||
Developed technology |
( |
) | — | ( |
) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total intangibles |
$ | $ | ( |
) | $ | $ | $ | ( |
) | $ | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
For the years ending: |
||||
2021 |
$ | |||
2022 |
||||
2023 |
||||
2024 |
||||
2025 |
||||
Thereafter |
||||
|
|
|||
Total amortization expense |
$ | |||
|
|
2020 | 2019 | |||||||||||||||
Carrying value | Fair value | Carrying value | Fair value | |||||||||||||
First Lien Term Facility |
$ | $ | $ | $ | ||||||||||||
2019 First Lien Term Facility |
||||||||||||||||
2017 Second Lien Term Facility |
||||||||||||||||
Revolving Facility |
For the years ending: |
||||
2021 |
$ | |||
2022 |
||||
2023 |
||||
2024 |
||||
2025 |
||||
Thereafter |
||||
|
|
|||
Total minimum lease payments |
||||
Less: amount representing interest |
( |
) | ||
|
|
|||
Present value of net minimum lease payments |
||||
Less: current portion |
( |
) | ||
|
|
|||
Capital leases, net of current portion |
$ | |||
|
|
Lease | ||||||||
For the years ending: | Lease receipts | commitments (1) |
||||||
2021 |
$ | $ | ||||||
2022 |
||||||||
2023 |
||||||||
2024 |
||||||||
2025 |
||||||||
Thereafter |
||||||||
|
|
|
|
|||||
Total minimum lease receipts / payments |
$ | $ | ||||||
|
|
|
|
(1) |
Minimum lease payments have not been reduced by minimum sublease rentals of $ non-cancelable subleases. |
2020 | 2019 | |||||||
First Lien Term Facility due May 2024 |
$ | $ | ||||||
2019 First Lien Term Facility due May 2024 |
||||||||
2017 Second Lien Term Facility due May 2025 |
||||||||
Revolving Facility due May 2022 |
||||||||
Less: unamortized debt issuance costs |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Less: current maturities of long-term debt |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Long-term debt, net of current portion |
$ | $ | ||||||
|
|
|
|
For the years ending: | Principal amount | |||
2021 |
$ | |||
2022 |
||||
2023 |
||||
2024 |
||||
2025 |
||||
|
|
|||
Total |
$ | |||
|
|
2020 | 2019 | 2018 | ||||||||||
Interest expense on debt, net of capitalized interest |
$ | $ | $ | |||||||||
Interest expense on capital leases |
||||||||||||
Amortization of deferred financing costs and fees |
||||||||||||
Interest income on Promissory Notes (Note 3) |
( |
) | — | — | ||||||||
|
|
|
|
|
|
|||||||
Total |
$ | $ | $ | |||||||||
|
|
|
|
|
|
2019 | 2018 | |||||||
Expected life (years) |
||||||||
Risk-free rate (%) |
% | % | ||||||
Expected volatility (%) |
% | % | ||||||
Expected dividend (%) |
% | % |
Number of units | Weighted- average grant date fair value |
|||||||
Outstanding at December 31, 2018 |
$ | |||||||
Granted |
||||||||
Forfeited |
( |
) | ( |
) | ||||
Effect of Cybersecurity Spin-Off |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Outstanding at December 31, 2019 |
$ | |||||||
Forfeited |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Outstanding at December 31, 2020 |
$ | |||||||
|
|
|
|
2020 | 2019 | 2018 | ||||||||||
Domestic and foreign (loss) earnings: |
||||||||||||
U.S. loss |
$ | ( |
) | $ | ( |
) | $ | ( |
) | |||
Foreign (loss) earnings |
( |
) | ( |
) | ||||||||
|
|
|
|
|
|
|||||||
Total loss from continuing operations before income taxes |
( |
) | ( |
) | ( |
) | ||||||
|
|
|
|
|
|
|||||||
Current: |
||||||||||||
U.S. Federal |
$ | — | $ | — | $ | — | ||||||
U.S. State and local |
( |
) | ( |
) | ||||||||
Foreign |
( |
) | ( |
) | ( |
) | ||||||
|
|
|
|
|
|
|||||||
Total current tax provision |
( |
) | ( |
) | ||||||||
|
|
|
|
|
|
|||||||
Deferred: |
||||||||||||
U.S. Federal |
||||||||||||
U.S. State and local |
( |
) | ||||||||||
Foreign |
( |
) | ( |
) | ||||||||
|
|
|
|
|
|
|||||||
Total deferred tax benefit |
( |
) | ||||||||||
|
|
|
|
|
|
|||||||
Total income tax (expense) benefit |
$ | ( |
) | $ | $ | |||||||
|
|
|
|
|
|
2020 |
2019 |
2018 |
||||||||||
Income tax at U.S. federal statutory income tax rate |
$ |
$ |
$ |
|||||||||
State and local taxes, net of federal income tax benefit |
||||||||||||
Valuation allowance |
( |
) |
( |
) |
||||||||
Nondeductible Equity-based compensation |
( |
) |
( |
) |
( |
) | ||||||
Taxes of foreign operations at rates different than U.S. Federal statutory rates |
( |
) |
( |
) | ||||||||
Foreign adjustments |
( |
) |
||||||||||
Impact of U.S. Tax Act |
( |
) |
( |
) | ||||||||
GILTI inclusion |
( |
) |
||||||||||
NOL adjustment |
( |
) |
( |
) | ||||||||
Other |
( |
) |
( |
) |
( |
) | ||||||
|
|
|
|
|
|
|||||||
Total income tax (expense) benefi t |
$ |
( |
) |
$ |
$ |
|||||||
|
|
|
|
|
|
2020 | 2019 | |||||||
Deferred tax assets: |
||||||||
Capital leases |
$ | $ | ||||||
Other accruals |
||||||||
Deferred rent |
||||||||
Acquisition and other related costs |
||||||||
Net operating loss carryforward |
||||||||
Interest expense carryforward |
||||||||
Asset retirement obligations |
||||||||
Allowance for doubtful accounts |
||||||||
Impairment of Promissory Notes |
||||||||
Other |
||||||||
Valuation allowance |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Total deferred tax assets |
||||||||
|
|
|
|
|||||
Less deferred tax liabilities: |
||||||||
Intangibles |
( |
) | ( |
) | ||||
Property, plant and equipment |
( |
) | ( |
) | ||||
Contract asset |
( |
) | ( |
) | ||||
Other |
( |
) | ||||||
|
|
|
|
|||||
Total deferred tax liability |
( |
) | ( |
) | ||||
|
|
|
|
|||||
Deferred tax liability, net |
$ | ( |
) | $ | ( |
) | ||
|
|
|
|
2020 | ||||
Beginning balance as of January 1 |
$ | — | ||
Additions based on tax positions related to the current year |
||||
|
|
|||
Closing balance as of December 31 |
$ | |||
|
|
• |
Service provider management consulting fee and structuring fee |
• |
Sponsor’s investment in the 2017 First Lien Term Facility and the 2017 Second Lien Term Facility |
• |
Relationships with certain members of the Company’s board of directors |
2020 | 2019 | |||||||
Revenues (1) |
$ | $ | ||||||
Selling, general and administrative expenses (2) |
— | |||||||
(Recovery) impairment of notes receivable from affiliate (3) |
( |
) | — | |||||
Interest income (4) |
— | |||||||
Other income, net (5) |
— |
(1) |
Revenues for the year ended December 31, 2020 include amounts recognized from contracts with Appgate, Brainspace Corporation, and Presidio. Appgate is an affiliate of the Company and a direct subsidiary of SIS. Brainspace Corporation was an affiliate of the Company and an indirect subsidiary of SIS at December 31, 2020. Brainspace Corporation was sold to an unrelated party in January 2021. Revenues for the year ended December 31, 2019 include amounts recognized from contracts with Presidio. |
(2) |
Selling, general and administrative expenses include amounts incurred under the Transition Services Agreement described in Note 3. |
(3) |
Represents net (recovery) impairment recognized in connection with amounts funded under the Promissory Notes described in Note 3. |
(4) |
Represents interest income recognized under one of the Promissory Notes described in Notes 3 and 21. |
(5) |
Includes income recognized under the Transition Services Agreement for the year ended December 31, 2020 – see Note 3. |
2020 | 2019 | |||||||
Accounts receivable (1) |
$ | $ | — | |||||
Due from affiliates (2) |
— | |||||||
Accounts payable (3) |
— | |||||||
Accrued expenses (4) |
||||||||
Due to affiliates (5) |
(1) |
Accounts receivable at December 31, 2020 include amounts due from Appgate under the Transition Services Agreement described in Note 3, and trade receivables due from Cyxtera Cybersecurity Inc. and Brainspace Corporation. |
(2) |
Due from affiliates at December 31, 2020 includes amounts due from Appgate under the Promissory Notes. |
(3) |
Accounts payable at December 31, 2020 include amounts due to Appgate under the Transition Services Agreement described in Note 3, and trade payables due to Appgate. |
(4) |
Accrued expenses at December 31, 2020 and 2019 include board fees owed to the independent directors of the Company. |
(5) |
Due to affiliates at December 31, 2020 includes amounts owed under the Services Agreement. Due to affiliates at December 31, 2019 includes amounts owed under the Services Agreement, as well as other net amounts owed to Appgate. |
Item 13. |
Other Expenses of Issuance and Distribution. |
Amount |
||||
Securities and Exchange Commission registration fee |
$ | 169,158.46 | ||
FINRA filing fee |
* | |||
Accountants’ fees and expenses |
* | |||
Legal fees and expenses |
* | |||
Blue Sky fees and expenses |
* | |||
Transfer Agent’s fees and expenses |
* | |||
Printing and engraving expenses |
* | |||
Miscellaneous |
* | |||
|
|
|||
Total expenses |
$ | * | ||
|
|
* | To be filed by amendment. |
Item 14. |
Indemnification of Directors and Officers. |
Item 15. |
Recent Sales of Unregistered Securities. |
Item 16. |
Exhibits and Financial Statement Schedules. |
Incorporated by Reference | ||||||||
Exhibit Number |
Description |
Form |
Exhibit | Filing Date | ||||
23.1 |
Consent of Deloitte & Touche LLP. | |||||||
23.2 |
Consent of WithumSmith+Brown, PC. | |||||||
23.3 |
Consent of KPMG LLP. | |||||||
23.4 |
Consent of Latham & Watkins LLP (included in Exhibit 5.1) | |||||||
24.1 |
Power of Attorney (included on signature page of the initial filing of this Registration Statement). | |||||||
99.1 |
Press release dated July 30, 2021. | 8-K |
99.2 | 8/4/2021 | ||||
101.INS |
XBRL Instance Document | |||||||
101.SCH |
XBRL Taxonomy Extension Schema Document | |||||||
101.CAL |
XBRL Taxonomy Calculation Linkbase Document | |||||||
101.DEF |
XBRL Taxonomy Definition Linkbase Document | |||||||
101.LAB |
XBRL Taxonomy Extension Label Linkbase Document | |||||||
101.PRE |
XBRL Taxonomy Extension Presentation Linkbase Document |
* | Certain of the exhibits and schedules to this Exhibit have been omitted in accordance with Regulation S-K Item 601(a)(5). The Company agrees to furnish a copy of all omitted exhibits and schedules to the SEC upon its request. |
Item 17. |
Undertakings. |
CYXTERA TECHNOLOGIES, INC. | ||
By: | /s/ Nelson Fonseca | |
Name: | Nelson Fonseca | |
Title: | Chief Executive Officer and Director |
Signature |
Title |
Date | ||
/s/ Nelson Fonseca Nelson Fonseca |
Chief Executive Officer and Director (Principal Executive Officer) |
August 19, 2021 | ||
/s/ Carlos Sagasta Carlos Sagasta |
Chief Financial Officer (Principal Financial Officer) |
August 19, 2021 | ||
/s/ Edmundo Miranda Edmundo Miranda |
Principal Accounting Officer | August 19, 2021 | ||
/s/ Fahim Ahmed Fahim Ahmed |
Director | August 19, 2021 | ||
/s/ John Diercksen John Diercksen |
Director | August 19, 2021 | ||
/s/ Michelle Felman Michelle Felman |
Director | August 19, 2021 | ||
/s/ Melissa Hathaway Melissa Hathaway |
Director | August 19, 2021 |
Signature |
Title |
Date | ||
/s/ Manuel Medina Manuel Medina |
Director | August 19, 2021 | ||
/s/ Jeffrey Smith Jeffrey Smith |
Director | August 19, 2021 | ||
/s/ Raymond Svider Raymond Svider |
Director | August 19, 2021 | ||
/s/ Gregory Waters Gregory Waters |
Director | August 19, 2021 |