Rackspace to redeem $86 million 8 5/8% senior notes due 2024

By Taylor Fox

New York, Oct. 15 – Rackspace Technology Global, Inc. issued a notice to redeem an $86 million portion of its outstanding 8 5/8% senior notes due 2024, according to an 8-K filing with the Securities and Exchange Commission.

The notes will be redeemed Nov. 15 at a redemption price equal to 104.313, plus interest.

After giving effect to the partial redemption and Rackspace’s previously reported tender offer to purchase for cash up to $600 million of its $1.12 billion outstanding 8 5/8% senior notes due 2024, which resulted in the purchasing and canceling of $515 million of the notes, the issuer will have either redeemed or purchased and canceled $601 million of the notes.

The remaining principal balance of the notes after giving effect to the completion of partial redemption and the tender offer will be $519 million.

Payment of the redemption price will be made Nov. 16.

Wells Fargo Bank, NA is the trustee.

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

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