New York, October 12, 2016 -- Moody's Investors Service, ("Moody's") has assigned a B1 corporate family rating (CFR) and B1-PD probability of default rating (PDR) to Inception Merger Sub, Inc. (Inception), a wholly owned subsidiary of investment funds of Apollo Global Management that will raise debt to finance its acquisition of Rackspace Hosting, Inc. (Rackspace, Ba1 review for downgrade). Inception plans to raise approximately $3.4 billion of new debt obligations, including a $2 billion seven year secured term loan, $225 million five year secured revolving credit facility, and $1.2 billion of eight year unsecured notes. In addition to the debt, Apollo will contribute $1.3 billion of equity to finance the $4.4 billion purchase. The existing $500 million of debt at Rackspace will be repaid in connection with the transaction using cash from the balance sheet. Moody's has assigned a Ba2 (LGD-2) rating to the senior secured credit facility and a B3 (LGD-5) rating to the unsecured notes. The ratings outlook for Inception is stable.

Vollständigen Artikel bei Moodys lesen