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Rackspace Technology launches public exchange offer for 3½% notes
Chicago, March 14 – Rackspace Technology, Inc. launched an exchange offer to holders of its 3½% first-priority senior secured notes due 2028 (Cusips: 750098AB1, U7502EAB0), according to a press release.
Holders are 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.
Early tendering noteholders will receive $700 of exchange notes and $0.7875 in cash for each $1,000 note tendered.
Late tendering holders will receive $670 of exchange notes and $0.7875 in cash.
Unpaid interest up to March 12 will be paid in cash. Interest on the new notes will accrue from March 12.
The early exchange deadline and withdrawal deadline are 5 p.m. ET on March 28.
The exchange offer expires at 5 p.m. ET on April 11.
Further, 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.
Early settlement of exchange offer is planned for April 2.
Final settlement is expected on April 15.
The exchange offer is open to Rule 144A and Regulation S holders.
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.
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