Rocket Software telegraphs $1 billion secured notes, preps Tuesday launch of $1 billion term loan

By Paul A. Harris

Portland, Ore., April 8 – Rocket Software Inc. is expected to appear soon in the high-yield new issue market with a $1 billion offering of senior secured notes, according to market sources.

The company plans to launch a $1 billion equivalent term loan B, in dollar- and euro-denominated tranches, on Tuesday lender calls. RBC, Barclays, Deutsche Bank, UBS, Citigroup, HSBC, Mizuho, SMBC and Goldman Sachs are leading the loan. Commitments are due April 17.

Proceeds plus new cash equity from existing shareholders and balance sheet cash will be used to fund the acquisition of Open Text’s Application Modernization and Connectivity business (AMC) for $2.275 billion. The acquisition is expected to close in the second quarter of 2024.

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

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