Rackspace Secures $1B Credit Facility

TL;DR

Rackspace just got a $1B credit line until 2029, giving them breathing room.

AI Summary

Rackspace Technology, Inc. announced on April 2, 2024, that it has entered into a new credit agreement for a $1.0 billion revolving credit facility. This facility matures on April 2, 2029, and is intended to provide ongoing financial flexibility. The company also reported its financial results for the period ending December 31, 2023.

Why It Matters

This new credit facility provides Rackspace with significant financial flexibility, potentially enabling strategic investments or weathering economic downturns.

Risk Assessment

Risk Level: medium — While a new credit facility is generally positive, the company's financial health and ability to service this debt will determine the ultimate risk.

Key Numbers

• $1.0B — Revolving Credit Facility (Provides ongoing financial flexibility)

Key Players & Entities

• Rackspace Technology, Inc. (company) — Registrant
• $1.0 billion (dollar_amount) — Revolving credit facility amount
• April 2, 2029 (date) — Maturity date of the credit facility
• April 2, 2024 (date) — Date of the report and earliest event
• December 31, 2023 (date) — Period for which financial results were reported

FAQ

Key Financial Figures

• $0.01 — ch registered Common stock, par value $0.01 per share RXT The Nasdaq Stock Market L
• $331.4 million — ivate Exchange, among other things, (i) $331.4 million aggregate principal amount of Existing
• $267.3 million — or purchased for cancellation and (ii) $267.3 million aggregate principal amount of new first
• $133.3 million — ge, pursuant to which (i) approximately $133.3 million aggregate principal amount of Existing
• $93.3 million — for cancellation and (ii) approximately $93.3 million aggregate principal amount of New Secur
• $513.7 million — Exchange, over 90% of the approximately $513.7 million aggregate principal amount of the Exist

Filing Documents

• rxt-20240402.htm (8-K) — 33KB
• 0001810019-24-000064.txt ( ) — 159KB
• rxt-20240402.xsd (EX-101.SCH) — 2KB
• rxt-20240402_lab.xml (EX-101.LAB) — 22KB
• rxt-20240402_pre.xml (EX-101.PRE) — 13KB
• rxt-20240402_htm.xml (XML) — 3KB

02. Results of Operations and Financial Condition

Item 2.02. Results of Operations and Financial Condition. As previously disclosed, on March 12, 2024, Rackspace Technology, Inc. (together with its subsidiaries, the " Company ") issued a press release announcing its financial results for the fiscal quarter and year ended December 31, 2023 and introducing guidance for the fiscal quarter ending March 31, 2024. On April 2, 2024, the Company reaffirmed the financial guidance provided by the Company in the previous press release dated March 12, 2024. A copy of the press release was provided in the Company's Current Report on Form 8-K filed on March 12, 2024, and is incorporated herein by reference. The information contained in this Item 2.02 shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the " Exchange Act "), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act or the Exchange Act, regardless of any general incorporation language in such filings, unless expressly incorporated by specific reference in such filing. The information contained in this Item 2.02 includes statements that are forward-looking and therefore subject to risks and uncertainties. All statements, other than statements of historical fact, included herein are, or could be, "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and are made in reliance on the safe harbor protections provided thereunder. These forward-looking statements relate to anticipated financial performance and other matters. Any forward-looking statement speaks only as of the date on which it is made. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise. Forward-looking statements can be identified by various words such as "reaffirms," "expects," "intends," "will," "antic

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. RACKSPACE TECHNOLOGY, INC. Date: April 2, 2024 By: /s/ Sarah Alexander Sarah Alexander Vice President, Deputy General Counsel & Assistant Secretary -4-

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View this 8-K filing on SEC EDGAR