Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers O > Headlines for Open Text ULC > News item |
Fitch revises Open Text outlook to stable
Fitch Ratings said it changed its outlook for Open Text Corp. (OTEX) and its subsidiaries, Open Text Holdings, Inc. and Open Text ULC to stable from negative.
“Fitch has revised the outlook to stable from negative, which reflects the company's planned divestiture of its application modernization and connectivity (AMC) assets for $2.275 billion, or $2 billion net of transaction costs and related taxes. Open Text has publicly stated that it will direct 100% of net proceeds within 90 days of closing toward debt repayment, which the company expects to occur in 4QFY24. Fitch now projects leverage to fall to just over 3.1x at the end of FY24 assuming $2 billion of debt is repaid before the closing of the fiscal year,” the agency said in a press release.
The agency concurrently affirmed OTEX’s BB+ long-term issuer default rating. The subsidiaries and OTEX are co-borrowers on the secured revolver.
Additionally, Fitch said it affirmed the BBB-/RR1 ratings on the senior secured debt and the BB+/RR4 ratings on the senior unsecured debt of OTEX and the BB+/RR4 ratings on Open Text Holdings' senior unsecured debt. Finally, it affirmed the BBB-/RR1 rating on OTEX’s secured term loan.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.