S&P lowers Open Text loan

S&P said it lowered its issue-level ratings on Open Text Corp.’s senior unsecured debt to BB from BB+ based on the upsizing of the company’s revolver to $750 million from $450 million.

“We have also revised our recovery prospects on the senior unsecured debt to reflect higher secured claims (upsized RCF and existing term loan B [TLB]) ahead of the unsecured debtholders. We have revised the recovery rating on the senior unsecured debt to 5 (10%-30%; rounded estimate: 20%) from 4 (30%-50%, rounded estimate: 30%). Open Text is also extending the maturity on its RCF to 2024 from 2022,” said S&P in a press release.

The company’s BB+ rating and stable outlook are unaffected by this rating change, the agency said.

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