OpenText said it has launched a senior secured notes offering to finance two debt moves: a full redemption of its $1.0 billion 6.900% senior secured notes due 2027 and a tender offer for up to $450 million of its 3.875% senior notes due 2028.
The company said the new notes would be issued in one or more series under Rule 144A and Regulation S, and would be guaranteed by the same wholly owned subsidiaries that back its existing senior secured credit facilities, term loan credit agreement and 2027 notes.
If completed as planned, the transaction would retire the entire $1.0 billion of 2027 notes, including the redemption premium, accrued interest and related costs. OpenText also plans to use proceeds to repurchase 2028 notes, with the tender offer capped at $450 million of principal, though the company said that amount could be increased or decreased.
Any proceeds left after those uses would go toward general corporate purposes. OpenText said it may also use cash on hand if the financing condition tied to the redemption or tender offer is satisfied or waived.
The company did not disclose the size, pricing or maturity of the new notes, saying those details will depend on market conditions. Following these announcements, the company's shares moved -0.65%, and are now trading at a price of $22.84. For more information, read the company's full 8-K submission here.
