OpenText prices $1B in senior secured notes to refinance debt

Open Text Corporation (NASDAQ: OTEX, TSX: OTEX) has priced an offering of $1 billion in senior secured notes, split between $500 million of 6.700% notes due 2031 and $500 million of 7.150% notes due 2033, according to a press release.

The notes offering is expected to close on Oct. 1, 2026, subject to customary closing conditions.

OpenText intends to use the net proceeds, along with cash on hand, to redeem in full its outstanding $1.0 billion principal amount of 6.900% Senior Secured Notes due 2027, including applicable redemption premiums and accrued interest. The proceeds will also fund a tender offer for up to $450 million of its outstanding 3.875% Senior Notes due 2028.

The notes will be guaranteed on a senior secured basis by OpenText's wholly-owned subsidiaries that currently serve as guarantors under its existing senior secured credit facilities and term loan credit agreement. The notes are being issued under Rule 144A and Regulation S exemptions and have not been registered under the Securities Act of 1933.

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