Rackspace Technology completes $2.3B term loan for refinancing; terms

Rackspace Technology Inc. has completed its $2.3 billion seven-year covenant-lite term loan B at pricing of L+275, with a 0.75% Libor floor and an issue price of 99.5 via a Citi-led arranger group, according to sources. Pricing came at the tight end of talk with a $100 million upsizing at the expense of a concurrent offering of pari passu secured notes. Proceeds from the loan, along with a $550 million issue of 3.50% secured notes due February 2028, will be used to refinance the issuer's existing $2.8 billion covenant-lite TLB due November 2023 (L+300, 1% floor). Rackspace Technology operates as a cloud technology services company. Terms: