Open Text plans new $900 million senior secured credit facility

By Sara Rosenberg

New York, July 13 - Open Text Inc. is looking to come to market with a $900 million senior secured credit facility (Ba1), according to a market source.

Barclays Capital Inc. and RBC Capital Markets LLC are the joint lead arrangers and joint bookrunners on the deal.

Timing on the launch is still to be determined, the source said.

The facility consists of a $100 million revolver, a $200 million delayed-draw term loan A and a $600 million term loan B, the source added.

Proceeds will be used to add cash to the balance sheet, fund the acquisition of Global 360 Holding Corp., refinance existing bank debt and for working capital purposes.

On Wednesday, Open Text announced that it acquired Global 360, a Dallas-based provider of process and case management solutions, for about $260 million.

Funds for the transaction came from revolver borrowings, but with this new deal, the company plans on using term loan debt to repay those revolver drawings.

Open Text is a Waterloo, Ont.-based enterprise software company.

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