Rackspace Technology Global Announces Final Results of Tender Offer

Rhea-AI Summary

Rackspace Technology (NASDAQ: RXT) has successfully completed its tender offer to repurchase up to $600 million of its 8.625% Senior Notes due 2024. The offer expired on September 9, 2020, with the company purchasing $507.636 million of notes prior to the early tender deadline and an additional $7.32 million by the expiration date. All validly tendered notes will be settled on or about September 11, 2020. This strategic move aims to optimize its debt structure and manage interest obligations effectively.

Positive

• Successfully repurchased $514.956 million of Senior Notes, reducing overall debt and interest obligations.
• Strategic tender offer enhances the company's financial health and positions for future growth.

Negative

• None.

SAN ANTONIO, Sept. 10, 2020 (GLOBE NEWSWIRE) -- Rackspace Technology Global, Inc. (NASDAQ: RXT) (the “Company”), a leading end-to-end multicloud technology solutions company, today announced the final results for its previously announced tender offer (the “Tender Offer”) to purchase for cash up to $600.0 million aggregate principal amount of its approximately $1,120.2 million outstanding 8.625% Senior Notes due 2024 (the “Notes”). The Tender Offer expired at the end of the day, 12:00 midnight, New York City time on Wednesday, September 9, 2020 (the “Expiration Time”).

On August 27, 2020, the Company purchased $507.636 million aggregate principal amount of Notes that were tendered at or prior to the end of the day, 12:00 midnight, New York City time on Tuesday, August 25, 2020 (the “Early Tender Time”). On September 10, 2020, the Company was advised by Global Bondholder Services Corporation, as Depositary for the Tender Offer, that after the Early Tender Time and at or prior to the Expiration Time, an additional $7,320,000 million in aggregate principal amount of the outstanding Notes had been validly tendered and not withdrawn in the Tender Offer.

Subject to the terms and conditions of the Tender Offer, as described in the Offer to Purchase, and the press release dated August 26, 2020, the Company has accepted for purchase all Notes validly tendered and not validly withdrawn prior to the Expiration Time, with the settlement date for such purchase expected to occur on or about September 11, 2020. 

About Rackspace Technology

Rackspace Technology is a leading end-to-end multicloud technology services company. We can 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.

Rackspace Technology Safe Harbor Statement

Some of the statements in this news release constitute “forward-looking statements” that do not directly or exclusively relate to historical facts. The forward-looking statements made in this release reflect the Company’s intentions, plans, expectations, assumptions and beliefs about future events and are subject to risks, uncertainties and other factors, many of which are outside of the Company’s control. Known risks include, among others, the risks included in Rackspace Technology, Inc.’s filings with the U.S. Securities and Exchange Commission. Because actual results could differ materially from the Company’s intentions, plans, expectations, assumptions and beliefs about the future, you are urged to view all forward-looking statements contained in this press release with caution. The Company does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

IR Contact
Investor Relations
IR@rackspace.com 

PR Contact
Natalie Silva
Rackspace Technology Corporate Communications
publicrelations@rackspace.com 

FAQ

What was the outcome of Rackspace Technology's tender offer?

Rackspace Technology successfully repurchased $514.956 million of its Senior Notes due 2024 as part of a tender offer that expired on September 9, 2020.

How much debt did Rackspace Technology repurchase in its tender offer?

Rackspace Technology repurchased a total of $514.956 million in Senior Notes during its tender offer.

When will the settlement for the tender offer occur?

The settlement for the tender offer is expected to occur on or about September 11, 2020.

What was the deadline for Rackspace Technology's tender offer?

The deadline for the tender offer was September 9, 2020, at 12:00 midnight New York City time.

What is the significance of the tender offer for Rackspace Technology's investors?

The tender offer aims to optimize the company's debt structure, potentially improving financial health and long-term growth for investors.