Open Text plans $800 million term loan B for GXS Group purchase

By Sara Rosenberg

New York, Nov. 5 - Open Text Corp. has received a commitment for an $800 million seven-year senior secured term loan B to help fund its acquisition of GXS Group Inc., company officials said in a conference call on Monday.

Officials went on to remark that based on the company's current ratings and term loan B market, pricing on the new loan could be estimated in the area of Libor plus 225 basis points to 250 bps, or all-in about 3% to 3¼%.

Barclays and RBC Capital Markets are the lead banks on the deal.

Under the agreement, GXS Group, a Gaithersburg, Md.-based B2B integration services provider, is being bought for $1,165,000,000.

Other funds for the transaction will come from $265 million of cash and $100 million of equity.

Closing is targeted within 90 days, subject to customary regulatory approvals and conditions.

Open Text is an Ontario-based provider of enterprise information management software that helps companies manage, secure and leverage their unstructured business information.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.