Rocket Software plans term loans, notes for OpenText’s AMC purchase

By Sara Rosenberg

New York, Nov. 28 – Rocket Software Inc. expects to get incremental senior secured term loans and new senior secured notes to help fund its acquisition of the Application Modernization and Connectivity business (AMC) of OpenText, according to a news release.

RBC Capital Markets LLC, Barclays, Deutsche Bank Securities Inc., UBS Securities LLC, Citigroup Global Markets Inc., HSBC Securities (USA) Inc., Mizuho Securities USA Inc. and SMBC Nikko Securities America Inc. provided the debt financing commitment.

Other funds for the $2.275 billion acquisition are expected to come from new cash equity from Rocket Software’s existing shareholders and cash from its balance sheet.

Inclusive of expected synergies, the company expects the acquisition will be leverage neutral on a total leverage basis, but leveraging on a secured basis.

Closing is expected in the second quarter of 2024, subject to regulatory approvals and other customary conditions.

Rocket Software is a Waltham, Mass.-based provider of enterprise infrastructure software.

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