| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers R > Headlines for Rackspace Finance, LLC > News item |
Moody’s acts on Rackspace debt after exchange
Moody's Ratings said it affirmed the Caa1 corporate family rating and Caa1-PD probability of default rating of Rackspace Technology Global, Inc.
Moody's assigned B2 ratings to the $375 million backed senior secured first-lien, first-out revolving credit facility expiring May 2028 and $275 million backed senior secured first-lien, first-out term loan B due May 2028.
Moody's assigned Caa1 ratings to $1.7 billion backed senior secured first-lien, second-out term loan B due May 2028 and $364 million senior secured first-lien, second-out notes due May 2028.
The borrower of the new debt is Rackspace Finance, LLC.
Moody's downgraded Rackspace's existing senior secured term loan B due February 2028 and 3.5% senior secured notes due February 2028 to Caa3 from B3 reflecting its subordination to the new debt.
Moody's also affirmed Rackspace's existing 5 3/8% senior unsecured notes due December 2028 at Caa3.
Rackspace's existing B3 $375 million senior secured revolving credit facility expiring August 2025 was terminated, and Moody's withdrew the rating.
The speculative grade liquidity rating remains SGL-2.
The outlook of Rackspace Technology was maintained at negative, and the outlook for Rackspace Finance is negative.
The assignment of new debt ratings follows Rackspace's completion of a series of exchange offers for its existing senior secured term loan due February 2028, senior secured notes due February 2028, and senior unsecured notes due December 2028.
After completion, $62 million of senior secured term loans due February 2028, $44 million of senior secured notes due February 2028 and $128 million of senior unsecured notes due December 2028 remain outstanding.
Moody’s said the affirmation of the Caa1 corporate family rating is based on Rackspace's improved financial profile after completion of the exchange offers.
© 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.