Rating Action: Moody’s assigns B1 to Rackspace’s new term loan
Global Credit Research – 26 Jan 2021
New York, January 26, 2021 — Moody’s Investors Service (Moody’s) has assigned a B1 rating to Rackspace Technology Global, Inc.’s (Rackspace) proposed $2.2 billion seven-year senior secured term loan B. The net proceeds from the proposed term loan issuance will be used in conjunction with other secured debt to fully refinance the company’s existing $2.8 billion term loan B due 2023. All other ratings including the company’s B2 corporate family rating (CFR) and stable outlook are unchanged.
..Issuer: Rackspace Technology Global, Inc.
….Senior Secured Bank Credit Facility, Assigned B1 (LGD3)
Rackspace’s B2 CFR reflects its high but moderately decreasing leverage, intensely competitive end markets which include large multi-national providers and risks to sustainability of business model evolution despite turnaround evidence and solid growth over recent quarters. The rating is also