Open Text Corp. initiates debt offering to redeem 2027 Notes
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What happened
Open Text Corporation announced it has commenced a proposed offering of senior secured notes under Rule 144A and Regulation S of the Securities Act of 1933. This offering is intended to fund the full redemption of $1.0 billion of its 6.900% Senior Secured Notes due 2027. The redemption of the 2027 Notes is conditional upon the company receiving net proceeds from debt securities sufficient to cover the redemption price.
Why it matters
The company plans to use the proceeds from the new notes to redeem the outstanding 2027 Notes and potentially fund a portion of the consideration for its 2028 Notes tender offer, up to $450 million. The new notes will be guaranteed by OpenText's existing wholly-owned subsidiaries.
From prnewswire.com