Open Text to price $1 billion two-part offering of notes on Tuesday

By Paul A. Harris

Portland, Ore., Nov. 9 – Open Text is in the market with a $1 billion two-part offering of unsecured notes (current ratings Ba2/BB) set to price in a Tuesday drive-by following a conference call with investors, according to market sources.

The Rule 144A and Regulation S for life deal includes $500 million of eight-year non-call three-year senior notes with initial guidance in the 4% area.

The offering also includes $500 million of 10-year non-call five-year senior notes with initial guidance in the 4¼% area.

Joint bookrunner Barclays will bill and deliver. Citigroup, JPMorgan, BMO, BofA, Morgan Stanley, RBC, MUFG, Wells Fargo, CIBC, HSBC, NBC, PNC and Scotia are also joint bookrunners.

Initial call premiums for both tranches are set at par plus 50% of the respective coupons.

The Waterloo, Ont.-based developer of management software plans to use the proceeds to refinance its 5 7/8% senior notes due 2026 and to fund cash to its balance sheet.

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