Open Text sets Oct. 5 bank meeting for $700 million credit facility

By Sara Rosenberg

New York, Sept. 23 - Open Text Inc. has scheduled a bank meeting for Oct. 5 to launch a proposed $700 million senior secured credit facility, according to a market sources.

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

The facility consists of a $100 million revolver and a $600 million term loan A, sources said.

Previously, the deal was expected to be comprised of a $100 million revolver, a $200 million delayed-draw term loan A and a $600 million term loan B, but given market conditions, the company has opted to go the all pro rata route.

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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