Open Text intends to price $250 million tap of 5 7/8% notes due 2026 in Thursday drive-by

By Paul A. Harris

Portland, Ore., Dec. 15 – Open Text Corp. plans to price a $250 million add-on to its 5 7/8% senior notes due June 1, 2026 (existing ratings Ba2/BB) on Thursday trailing a late-morning conference call with investors, according to a market source.

Barclays, RBC Capital Markets Corp. and Citigroup Global Markets Inc. are the joint bookrunners for the Rule 144A and Regulation S for life offering.

The notes become callable on June 1, 2021 at 102.938 and feature a three-year 35% equity clawback and a 101% poison put.

The Waterloo, Ont.-based provider of enterprise information management software plans to use the proceeds to finance a portion of its acquisition of Dell EMC’s Enterprise Content Division.

The original $600 million issue priced at par on May 25, 2016. The add-on notes will immediately become fungible with original notes.

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