Open Text launches $700 million credit facility at Libor plus 250 bps

By Sara Rosenberg

New York, Oct. 5 - Open Text Inc. launched its $700 million senior secured credit facility on Wednesday with price talk of Libor plus 250 basis points, according to a market source.

Pricing is based on a leverage grid. It can step up to Libor plus 275 bps if leverage is 2.25 times or more and step down to Libor plus 225 bps if leverage is less than 1.5 times, the source said.

The facility consists of a $100 million revolver and a $600 million term loan A, and the tranches are being sold as a strip.

The revolver has a 30 bps unused fee.

Upfront fees are being offered at 50 bps for commitments of $50 million, 30 bps for commitments of $35 million or more and 25 bps for commitments of $25 million or more, the source added.

Commitments are due on Oct. 21.

Barclays Capital Inc. and RBC Capital Markets LLC are the joint lead arrangers and joint bookrunners on the deal.

Proceeds will be used to add cash to the balance sheet, refinance existing bank debt, including the revolver borrowings that were used to fund the acquisition of Global 360 Holding Corp., and for working capital purposes.

Open Text is a Waterloo, Ont.-based enterprise software company.

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