Moody's assigns Ba2 to Open Text notes

Moody's Investors Service said it assigned Ba2 ratings to the proposed senior notes being issued by Open Text Corp. and its wholly owned subsidiary Open Text Holdings Inc.

Open Text's other ratings, including the Baa2 ratings for its senior secured credit facilities and the Ba2 ratings for its senior unsecured notes are not affected by these transactions, the agency said.

Open Text intends to use a substantial portion of proceeds to redeem the $850 million of senior notes due 2026 and the rest for general corporate purposes, including acquisitions.

On Monday, Open Text announced its plans to acquire Zix Corp., Inc. for $860 million, including Zix's cash and debt. The company plans to fund the deal with its cash balances.

The outlook is stable.

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