New Issue: Open Text prices $250 million tap of 5 7/8% notes due 2026 at 102.75 to yield 5.421%

By Paul A. Harris

Portland, Ore., Dec. 15 – Open Text Corp. priced a $250 million add-on to its 5 7/8% senior notes due June 1, 2026 (Ba2/BB) at 102.75 to yield 5.421% on Thursday, according to a market source.

The reoffer price came in the middle of the 102.5 to 103 price talk.

Barclays was the left bookrunner. RBC Capital Markets Corp. and Citigroup Global Markets Inc. were the joint bookrunners.

The Waterloo, Ont.-based provider of enterprise information management software plans to use the proceeds to finance a portion of its acquisition of Dell EMC’s Enterprise Content Division.

Issuer:	Open Text Corp.
Face amount:	$250 million
Proceeds:	$256,875,000
Maturity:	June 1, 2026
Security description:	Add-on to 5 7/8% senior notes due June 1, 2026
Left bookrunner:	Barclays
Joint bookrunners:	RBC Capital Markets Corp., Citigroup Global Markets Inc.
Coupon:	5 7/8%
Price:	102.75
Yield:	5.421%
First call:	June 1, 2021 at 102.938
Equity clawback:	40% at 105.875 until June 1, 2019
Trade date:	Dec. 15
Settlement date:	Dec. 20
Ratings:	Moody's: Ba2
	S&P: BB
Distribution:	Rule 144A and Regulation S for life
Price talk:	102.5 to 103
Marketing:	Quick to market
Original issue:	$600 million priced at par on May 25, 2016
Fungibility:	Add-on notes will immediately become fungible with original notes
Total issue size:	$850 million

© 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.