Rackspace reports final results of offer to exchange 3½% first-priority notes

By Wendy Van Sickle

Columbus, Ohio, April 12 – Rackspace Technology, Inc. said holders tendered $138,427,000 principal amount of its notes for exchange under its March 14 offer to holders of its 3½% first-priority senior secured notes due 2028 (Cusips: 750098AB1, U7502EAB0), according to a press release.

The total reflects 75.9% of the existing notes.

The offer expired at 5 p.m. ET on April 12, having previously been extended by one day.

As previously reported, as of the early participation time of 5 p.m. ET on March 28, holders had tendered $133,271,000 principal amount of the existing notes.

Holders were being offered a combination of new notes and cash.

The new notes will have a 3½% coupon and will be considered first-priority senior secured notes due 2028. The issuer will be a new subsidiary of the company, Rackspace Finance, LLC.

Initially only early tendering noteholders were eligible to receive $700 of exchange notes and $0.7875 in cash for each $1,000 note tendered, which included $30 of additional new notes as an early premium, but the company previously extended the premium such that it will be paid to all participating noteholders.

Unpaid interest up to March 12 will be paid in cash. Interest on the new notes will accrue from March 12.

The withdrawal deadline was also 5 p.m. ET on March 28.

Tendering noteholders will have the right to purchase new first-lien first-out term loans.

For each $1,000 note tendered, holders may pay $101.02436 for $102.04481 of the new term loans (at a discount of 1%).

Jefferies Capital Services, LLC is the fronting lender for the funding offer.

Noteholders who participate in the funding offer for the term loans need to submit lender documentation by 11:59 p.m. ET on March 28.

Final settlement is scheduled for April 16.

The exchange offer is open to Rule 144A and Regulation S holders. The offer was announced on March 14.

Epiq Corporate Restructuring, LLC is the transaction agent for the offers (tabulation@epiqglobal.com, https://epiqworkflow.com/cases/RackspaceEL)

Rackspace is a San Antonio-based cloud computing services company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.