OpenText launches $3.57 billion term loan at SOFR plus 275 bps

By Sara Rosenberg

New York, Aug. 4 – OpenText Corp. launched on Friday without a lender call a $3.567 billion senior secured term loan B due Jan. 31, 2030 (Ba1/BBB-/BBB-) with price talk of SOFR+10 basis points CSA plus 275 bps with a 0.5% floor and a par issue price, according to a market source.

The term loan has 101 soft call protection for six months and a maximum total net leverage ratio covenant of 4.5x, the source said.

Barclays and BofA Securities Inc. are the joint bookrunners on the deal. Barclays is the administrative agent.

Commitments are due at 5 p.m. ET on Wednesday, the source added.

Proceeds will be used to reprice an existing term loan B due January 2030 down from SOFR+10 bps CSA plus 350 bps with a 0.5% floor.

OpenText is a Waterloo, Ont.-based provider of enterprise information management, helping companies securely capture, govern and exchange information.

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