New Issue: Rackspace sells $550 million 5 3/8% eight-year senior notes at par

By Paul A. Harris

Portland, Ore., Nov. 16 – Rackspace Technology Global Inc. priced a $550 million issue of eight-year senior notes (Caa1/B-) at par to yield 5 3/8% in a Monday drive-by, according to market sources.

The yield printed 12.5 basis points inside of the 5½% to 5¾% yield talk. Initial talk was in the high 5% area to 6%.

Citigroup Global Markets Inc. was the lead bookrunner. Joint bookrunners were 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.

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.

Issuer:	Rackspace Technology Global Inc.
Amount:	$550 million
Maturity:	Dec. 1, 2028
Securities:	Senior notes
Lead bookrunner:	Citigroup Global Markets Inc.
Joint bookrunners:	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.
Co-manager:	Apollo
Coupon:	5 3/8%
Price:	Par
Yield:	5 3/8%
Spread:	473 bps
First call:	Dec. 1, 2023 at 102.688
Trade date:	Nov. 16
Settlement date:	Dec. 1
Ratings:	Moody's: Caa1
	S&P: B-
Distribution:	Rule 144A and Regulation S for life
Price talk:	5½% to 5¾%
Marketing:	Drive-by

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