S&P rates Open Text loan BBB

Standard & Poor's said it assigned its BBB issue-level rating and 1 recovery rating to Open Text Corp.'s $600 million term loan and $100 million revolving credit facility.

The agency said the rating assignments follow the company's Nov. 9 announcement that it has entered into an amended and restated credit agreement. The agreement increases total borrowing availability to $700 million from $465 million.

According to S&P, proceeds from the term loan were used, in part, to fully repay borrowings under the company's existing $390 million term loan, with $284 million outstanding at Sept. 30, and $75 million revolver, with $49 million outstanding at Sept. 30.

"The ratings on Open Text reflect what we view as the company's fair business risk profile and intermediate financial risk profile," said S&P credit analyst Madhav Hari in a news release. "The ratings are constrained by what we view as the highly competitive and rapidly evolving technology marketplace in which the company operates."

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