Open Text to price $1.6 billion two-part notes in Monday drive-by

By Paul A. Harris

Portland, Ore., Feb. 3 – Open Text plans to sell $1.6 billion of senior notes (existing ratings: Ba2/BB) in two tranches in a quick-to-market Monday trade following a mid-morning conference call with investors, according to a market source.

Open Text Corp. is selling eight-year notes, which become callable after three years at par plus 50% of the coupon.

Open Text Holdings Inc. is selling 10-year notes, which become callable after five years at par plus 50% of the coupon.

Tranche sizes remain to be determined.

Joint bookrunner Barclays will bill and deliver for the Rule 144A and Regulation S for life notes. Citigroup Global Markets Inc., J.P. Morgan Securities LLC, BMO Securities, BofA Securities Inc., Morgan Stanley & Co. LLC and RBC Capital Markets are the joint bookrunners.

HSBC, MUFG, NBC, PNC Capital Markets, BNS, CIBC World Markets and Wells Fargo Securities LLC are the co-managers.

The Waterloo, Ont.-based enterprise information management software supplier plans to use the proceeds to refinance its 5 5/8% senior notes due 2023, as well as to refinance outstanding revolver balances drawn to complete the acquisition of Carbonite, Inc., and for general corporate purposes, including potential future acquisitions.

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