Open Text launches $800 million term loan B at Libor plus 225 bps

By Sara Rosenberg

New York, Dec. 3 - Open Text Corp. launched its $800 million seven-year senior secured term loan B (BBB) on Tuesday with price talk of Libor plus 225 basis points with a 0.75% Libor floor and an original issue discount of 991/2, according to a market source.

The B loan has 101 soft call protection for six months, amortization of 1% per annum and a maximum total net leverage covenant of 4 times, the source said.

Commitments are due on Dec. 17.

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

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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