Open Text readies launch of $800 million term loan B for Dec. 3

By Sara Rosenberg

New York, Nov. 26 - Open Text Corp. is scheduled to hold a bank meeting at 9:30 a.m. ET on Dec. 3 to launch its $800 million seven-year senior secured term loan B, according to a market source.

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

Official price talk is not yet available.

When the company announced the deal early this month, officials said in a conference call that based on current ratings and the 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%.

Also, filings with the Securities and Exchange Commission said that the loan would have 101 soft call protection for six months.

Proceeds will be used to help fund the acquisition of GXS Group Inc., a Gaithersburg, Md.-based B2B integration services provider, for $1,165,000,000.

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

Closing is 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.

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