Rackspace amends terms, gives early results of tender for 8 5/8% notes

By Taylor Fox

New York, Aug. 26 – Rackspace Technology Global, Inc. announced the early tender results for its tender offer to purchase for cash up to $600 million of its $1.12 billion outstanding 8 5/8% senior notes due 2024 (Cusip: 45332JAA0), according to a news release.

Rackspace will also amend the terms of the offer to now pay the total consideration, including the early tender payment, to holders who validly tender their notes before the expiration time.

The total consideration is $1,057.50 per $1,000 principal amount of the notes, including the early tender payment of $30 per $1,000 of notes validly tendered.

As of the 12 a.m. ET Aug. 25 early tender deadline, $507.636 million, or 45.32%, of the outstanding notes had been validly tendered and not withdrawn.

The offer will expire at 12 a.m. ET on Sept. 9.

The early settlement date is expected to occur on or about Aug. 27.

Because the principal amount of notes validly tendered and not validly withdrawn prior to the early tender time is less than the tender cap, Rackspace intends to accept for purchase notes validly tendered after the early tender time and prior to the expiration time.

Citigroup Global Markets Inc. (800 558-3745, 212 723-6106) is dealer manager for the offer.

Global Bondholder Services Corp. (212 430-3774 for banks and brokers, 866 470-3900 for others) is information agent and depositary for the offer.

Rackspace is a multicloud technology services company based in Windcrest, Tex.

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