The offering, conducted under Rule 144A and Regulation S, involves debt guaranteed by the company’s existing wholly-owned subsidiaries. These notes will share the same security structure as OpenText’s current term loan credit agreements and the 2027 notes slated for redemption. Beyond clearing the 2027 debt, the firm plans to use remaining funds to purchase a portion of its 2028 notes, with any leftover capital earmarked for general corporate purposes.
In section Releases
OpenText Initiates Debt Restructuring to Retire 2027 Notes
Waterloo-based OpenText has launched a new offering of senior secured notes, aiming to leverage the proceeds to redeem its outstanding $1 billion in 2027 notes. The company is simultaneously initiating a tender offer for up to $450 million of its 3.875% senior notes due in 2028.
Execution of this strategy remains contingent on prevailing market conditions. OpenText noted that while it may utilize cash on hand to supplement the tender offer or redemption, the move is subject to specific financing conditions. The company has directed holders of the 2028 notes to consult the formal Offer to Purchase document, processed through the Global Bondholder Services Corporation, for further participation details.
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