Rackspace (RAX) Updates on Takeover Financing Arrangements

October 13, 2016 6:12 AM EDT

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Rackspace (NYSE: RAX) filed an investor presentation on Thursday.

In part, the company noted that it expects its takeover by Inception Parent to close by Q416, following the receipt of shareholders approval.

Financing for the deal is as follows:

  • $225 million: 5-year, senior secured revolving credit facility
  • $2 billion: 7-year senior secured term loan B
  • $1.2 billion: 9-year senior unsecured notes
  • $1.258 million of new equity provided by Apollo-led syndicate.

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