Rackspace Technology begins exchange offer for lenders

By Mary-Katherine Stinson

Lexington, Ky., March 13 – Rackspace Technology, Inc. launched a public term loan exchange offer to all term lenders under indirect subsidiary Rackspace Technology Global, Inc.’s first-lien credit agreement dated Nov. 3, 2016, according to an 8-K filing with the Securities and Exchange Commission.

If all lenders participate, $592.3 million aggregate principal amount of term loans under the existing agreement will be exchanged or purchased for cancelation, and $418.8 million aggregate principal amount of new first-lien second-out term loans would be issued by Rackspace Finance, LLC.

Additionally, Rackspace expects to launch an exchange offer to eligible holders to exchange the 3½% first-priority senior secured notes due 2028 issued by Rackspace Technology Global for 3½% FLSO senior secured notes due 2028 issued by Rackspace Finance on substantially the same terms as the public term loan exchange.

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

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