Rackspace Technology Announces Final Results of the Exchange Offer Relating to its 3.50% First-Priority Senior Secured Notes due 2028
April 12 2024 - 7:09PM
Rackspace Technology®
(NASDAQ: RXT) (“Rackspace”
or the “Company”), a leading end-to-end hybrid, multicloud, and AI
technology solutions company, today announced the final results of
the previously announced offer by its indirect subsidiary Rackspace
Finance, LLC (the “New Issuer”), to eligible holders in respect of
any and all of the 3.50% First-Priority Senior Secured Notes due
2028 (the “Existing Secured Notes”) issued by its indirect
subsidiary Rackspace Technology Global, Inc., to (i) (A) exchange
certain of those Existing Secured Notes for new 3.50% FLSO Senior
Secured Notes due 2028 (the “Exchange Notes”) issued by the New
Issuer and (B) have purchased for cancellation certain of those
Existing Secured Notes by the New Issuer for cash (collectively,
the “Exchange Offer”), and (ii) fund (the “Funding Offer” and,
together with the Exchange Offer, the “Offers”) new senior secured
first lien first out term loans of the New Issuer, in each case,
subject to the terms and conditions of the offering memorandum
dated March 14, 2024 (as amended by the Company’s press release
dated March 29, 2024, the “Offering Memorandum”). The Exchange
Offer expired at 5:00 p.m., New York City time, on April 12, 2024
(the “Expiration Time”).
As of the Expiration Time, the New Issuer
received from eligible holders valid and unwithdrawn tenders, as
reported by Epiq Corporate Restructuring, LLC (the “Transaction
Agent” or “Epiq”), the transaction agent, representing $138,427,000
in aggregate principal amount of Existing Secured Notes (or 75.9%
of the Existing Secured Notes outstanding prior to the commencement
of the Exchange Offer), which includes an additional $5,156,000 in
aggregate principal amount of the Existing Secured Notes validly
tendered (and not validly withdrawn) since March 28, 2024. The New
Issuer expects to settle the Exchange Offer with respect to such
additional Existing Secured Notes on April 16, 2024.
About Rackspace Technology
Rackspace Technology is a leading
end-to-end hybrid, multicloud, and AI solutions company. We design,
build, and operate our customers’ cloud environments across all
major technology platforms, irrespective of technology stack or
deployment model. We partner with our customers at every stage of
their cloud journey, enabling them to modernize applications, build
new products, and adopt innovative technologies.
Forward-Looking Statements
The Company has made statements in this press
release that are forward-looking and therefore subject to risks and
uncertainties. All statements, other than statements of historical
fact, included in this press release are, or could be,
“forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995 and are made in reliance
on the safe harbor protections provided thereunder. These
forward-looking statements include statements related to the Offers
and the Company’s ability to consummate the Offers within the time
period expected, or at all. Any forward-looking statement made in
this press release speaks only as of the date on which it is made.
The Company undertakes no obligation to publicly update or revise
any forward-looking statement, whether as a result of new
information, future developments or otherwise. Forward-looking
statements can be identified by various words such as “expects,”
“intends,” “will,” “anticipates,” “believes,” “confident,”
“continue,” “propose,” “seeks,” “could,” “may,” “should,”
“estimates,” “forecasts,” “might,” “goals,” “objectives,”
“targets,” “planned,” “projects,” and similar expressions. These
forward-looking statements are based on management’s current
beliefs and assumptions and on information currently available to
management. The Company cautions that these statements are subject
to risks and uncertainties, many of which are outside of its
control, and could cause future events or results to be materially
different from those stated or implied in this press release,
including among others, risk factors that are described in the
Company’s Annual Reports on Form 10-K, Quarterly Reports on Form
10-Q, Current Reports on Form 8-K, and other filings with the SEC,
including the sections entitled “Risk Factors” and “Management’s
Discussion and Analysis of Financial Condition and Results of
Operations” contained therein.
Media Contact
Natalie Silva publicrelations@rackspace.com
Investor Relations Contact
Sagar Hebbarir@rackspace.com
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