Rackspace's $1.6 Billion Loan Jumps 5 Cents on 30MW AMD Data Center Deal
Updated
Updated · Bloomberg · Jun 16
Rackspace's $1.6 Billion Loan Jumps 5 Cents on 30MW AMD Data Center Deal
3 articles · Updated · Bloomberg · Jun 16
Summary
Rackspace's first-lien term loan due 2028 rose about 5 cents on the dollar Tuesday to 93.5-95.5 cents, extending a rebound from deeply distressed trading levels two months ago.
The move followed Rackspace's disclosure that 30 megawatts of AMD-based compute will be deployed across its global data centers from late 2026 through 2028.
Rackspace shares gained nearly 10% on Tuesday after the announcement, while AMD shares fell about 4%.
The agreement, signed with AMD earlier Tuesday, centers on AI infrastructure and marks a concrete rollout of compute capacity across Rackspace's global footprint.