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Open Text provides further details on $1 billion term loan commitment
By Sara Rosenberg
New York, Sept. 13 – Open Text Corp. revealed in an 8-K filed with the Securities and Exchange Commission on Tuesday that its $1 billion debt commitment for the acquisition of Dell EMC’s Enterprise Content Division is in the form of a seven-year first-lien term loan.
The term loan is expected to have 101 soft call protection for six months and amortization of 1% per annum, the filing said.
Barclays is the lead arranger and bookrunner on the deal.
Under the agreement, Dell EMC’s Enterprise Content Division, a provider of Enterprise Content Management solutions, is being bought for $1.62 billion.
Other funds for the transaction will come from cash on hand, borrowings under the company’s existing revolver, and/or proceeds from the issuance of equity securities and/or equity-linked securities.
The company plans to maintain a conservative capital structure and preserve current credit ratings.
Closing is expected in the next 90 to 120 days, subject to regulatory approvals and customary closing conditions. The transaction is not subject to financing.
Open Text is a Waterloo, Ont.-based software provider of Enterprise Information Management.
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