OpenText said Tuesday it launched a proposed senior secured notes offering to refinance debt and support a tender offer on another bond issue.
The Waterloo, Ontario-based company said it plans to use the proceeds to redeem its entire $1.0 billion outstanding 6.900% senior secured notes due 2027, including the redemption premium, accrued interest and related costs. It also intends to use proceeds to buy back up to $450 million of its 3.875% senior notes due 2028 in a tender offer, subject to increase or decrease.
If the financing condition is met or waived, OpenText said it may also use cash on hand to cover any remaining portion of the redemption or tender offer. Any leftover proceeds would go to general corporate purposes.
The new notes will be senior secured and guaranteed by OpenText subsidiaries that already guarantee or co-obligate under its senior secured credit facilities, term loan credit agreement and the 2027 notes. The company said the new debt and guarantees will be secured on the same basis as those existing obligations.
OpenText did not disclose the size, timing or pricing of the new offering, saying those details remain subject to market conditions and other factors. Following these announcements, the company's shares moved 0.3%, and are now trading at a price of $23.06. If you want to know more, read the company's complete 8-K report here.
