Home / Business and Economy / Rackspace Debt Soars on AMD Data Center Deal
Rackspace Debt Soars on AMD Data Center Deal
16 Jun
Summary
- Rackspace's $1.6 billion loan value increased significantly.
- This surge follows a new data center agreement with AMD.
- The debt had previously traded at deeply distressed levels.
Rackspace Technology Inc. has experienced a substantial increase in the value of its $1.6 billion loan. This financial upturn is directly attributed to the company's recent signing of a data center deal with Advanced Micro Devices Inc. The agreement has propelled a rally in Rackspace's debt, which had been trading at deeply distressed levels as recently as two months ago.
The cloud-computing services provider, which is backed by Apollo Global Management Inc., sees this partnership as a pivotal moment. The deal with AMD is expected to bolster Rackspace's market position and contribute to its ongoing financial recovery. This development contrasts sharply with the preceding period, where its debt reflected significant investor concern.
