Rackspace driving by with $550 million eight-year notes; early guidance high 5% area to 6%

By Paul A. Harris

Portland, Ore., Nov. 16 – Rackspace Technology Global Inc. plans to price a $550 million offering of eight-year senior notes (expected ratings Caa1/B-) in a Monday drive-by trailing a mid-morning conference call with investors, according to market sources.

Initial price talk has the deal coming to yield in the high 5% area to 6%, a trader said.

Citigroup Global Markets Inc. is the lead bookrunner. Barclays, BMO Capital Markets Corp., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, HSBC Securities (USA) Inc., J.P. Morgan Securities LLC, Mizuho Securities USA Inc., MUFG and RBC Capital Markets Corp. are the joint bookrunners. Apollo is the co-manager.

The Rule 144A and Regulation S notes become callable after three years at par plus 50% of coupon.

The San Antonio-based multi-cloud managed services company plans to use the proceeds to refinance its remaining 8 5/8% senior notes due November 2024.

© 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.