OpenText Cuts Debt with Successful Tender Offer

By Bobby Samwell • Thursday, October 01 10:49 • Permanent Link

OpenText said holders tendered $697.563 million of its 3.875% senior notes due 2028 into a cash offer capped at $300 million, forcing a proration factor of 43.047752%.

The company set the tender offer consideration at $981.71 for each $1,000 principal amount of notes accepted. That price was based on a reference yield of 4.773% and a 50-basis-point spread over the 4.250% U.S. Treasury due Feb. 15, 2028.

OpenText will accept the full $300 million maximum amount and expects to settle the purchase on Oct. 2, 2026. The accepted notes will also receive accrued and unpaid interest through settlement.

The company said it expects to close a concurrent senior secured notes offering on Oct. 1, 2026, and plans to use those proceeds, together with cash on hand, to redeem in full its 6.900% senior secured notes due 2027, including the redemption premium, accrued interest and related costs. It also plans to fund the tendered 2028 notes it accepts under the offer. Following these announcements, the company's shares moved 0.49%, and are now trading at a price of $22.42. Check out the company's full 8-K submission here.

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