OpenText launches $1B secured notes to refinance 2027, 2028 debt
What's the deal? OpenTextDealroom has a profile for this one. Try Dealroom →, the Waterloo, Ontario-based information management software company, has launched a proposed offering of senior secured notes to raise $1 billion. The company plans to redeem the full $1 billion principal of its 6.900% Senior Secured Notes due 2027 and fund a tender offer for part of its 3.875% Senior Notes due 2028.
Where the money goes: The tender offer targets up to $450 million of the 2028 notes, subject to increase or decrease. Net proceeds will also cover redemption premiums, accrued interest, and related costs, with any remainder going to general corporate purposes.
Why now? The move swaps out debt maturing in 2027 for new notes, extending OpenText's runway. The offering's precise timing, size, and terms remain subject to market conditions.
How it works: The notes are being offered under Rule 144A and Regulation S, meaning they target qualified institutional buyers and offshore investors rather than the public. They will be guaranteed on a senior secured basis by OpenText subsidiaries and secured alongside the company's existing credit facilities.
The signal: At $1 billion, this ranks among the largest post-IPO debt raises by a Canadian company, sitting in the 95th percentile of 1,457 comparable rounds. For OpenText, the refinancing reflects a routine but sizeable effort to manage maturities and keep its balance sheet flexible.
Read more: pr.sandyjournal.com
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