Published on 2/3/2020 in the Prospect News Canadian Bonds Daily and Prospect News High Yield Daily.
New Issue: Open Text prices upsized $1.8 billion of notes in two tranches
By Paul A. Harris
Portland, Ore., Feb. 3 – Open Text priced an upsized $1.8 billion of senior notes (existing ratings Ba2/BB) in two tranches in a quick-to-market Monday trade, according to a market source.
Open Text Corp. priced $900 million eight-year notes at par to yield 3 7/8%. The yield printed at the tight end of yield talk in the 4% area.
Open Text Holdings Inc. priced $900 million 10-year notes at par to yield 4 1/8%. The yield printed at the tight end of yield talk in the 4¼% area.
Bookrunners were Barclays (bill and deliver), Citigroup, JPMorgan, BMO, BofA, Morgan Stanley and RBC.
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.
| Company: | Open Text
|
| Amount: | $1.8 billion, increased from $1.6 billion
|
| Securities: | Senior notes
|
| Bookrunners: | Barclays (bill and deliver), Citigroup, JPMorgan, BMO, BofA, Morgan Stanley and RBC
|
| Co-managers: | HSBC, MUFG, NBC, PNC, BNS, CIBC and Wells Fargo
|
| Trade date: | Feb. 3
|
| Settlement date: | Feb. 18
|
| Expected ratings: | Moody's: Ba2
|
| S&P: BB
|
| Distribution: | Rule 144A and Regulation S for life
|
| Marketing: | Drive-by
|
|
|
| Eight-year notes
|
| Issuer: | Open Text Corp.
|
| Amount: | $900 million
|
| Maturity: | Feb. 15, 2028
|
| Coupon: | 3 7/8%
|
| Price: | Par
|
| Yield: | 3 7/8%
|
| Spread: | 241 bps
|
| First call: | Feb. 15, 2023 at 101.938
|
| Price talk: | 4% area
|
|
|
| 10-year notes
|
| Issuer: | Open Text Holdings
|
| Amount: | $900 million
|
| Maturity: | Feb. 15, 2030
|
| Coupon: | 4 1/8%
|
| Price: | Par
|
| Yield: | 4 1/8%
|
| Spread: | 257 bps
|
| First call: | Feb. 15, 2025 at 102.063
|
| Price talk: | 4¼% area
|
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