Published on 12/15/2016 in the Prospect News Canadian Bonds Daily and Prospect News High Yield Daily.
New Issue: Open Text prices $250 million tap of 5 7/8% notes due 2026 at 102.75 to yield 5.421%
By Paul A. Harris
Portland, Ore., Dec. 15 – Open Text Corp. priced a $250 million add-on to its 5 7/8% senior notes due June 1, 2026 (Ba2/BB) at 102.75 to yield 5.421% on Thursday, according to a market source.
The reoffer price came in the middle of the 102.5 to 103 price talk.
Barclays was the left bookrunner. RBC Capital Markets Corp. and Citigroup Global Markets Inc. were the joint bookrunners.
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.
Issuer: | Open Text Corp.
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Face amount: | $250 million
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Proceeds: | $256,875,000
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Maturity: | June 1, 2026
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Security description: | Add-on to 5 7/8% senior notes due June 1, 2026
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Left bookrunner: | Barclays
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Joint bookrunners: | RBC Capital Markets Corp., Citigroup Global Markets Inc.
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Coupon: | 5 7/8%
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Price: | 102.75
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Yield: | 5.421%
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First call: | June 1, 2021 at 102.938
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Equity clawback: | 40% at 105.875 until June 1, 2019
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Trade date: | Dec. 15
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Settlement date: | Dec. 20
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Ratings: | Moody's: Ba2
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| S&P: BB
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Distribution: | Rule 144A and Regulation S for life
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Price talk: | 102.5 to 103
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Marketing: | Quick to market
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Original issue: | $600 million priced at par on May 25, 2016
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Fungibility: | Add-on notes will immediately become fungible with original notes
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Total issue size: | $850 million
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