Barclays acted as administrative agent, collateral agent and swing line lender on an amendment and restatement to Open Text’s existing term loan B credit facility, increasing the aggregate principal amount to $1 billion.
According to a related 8-K filing, Royal Bank of Canada served as documentary credit lender on the transaction.
Proceeds from the facility will be used to repay outstanding borrowings under OpenText’s committed revolving credit facility and refinance term loans existing immediately before the amendment. The amendment also extends its maturity date by approximately four years to 2025, reduces the applicable interest rate margin thereunder by 25 basis points (to 1.75%, with respect to LIBOR advances) and amends certain other terms and conditions to provide OpenText with additional operating flexibility.
As a result of this transaction, together with the use of approximately $45 million of the company’s $605 million in cash as of March 31, 2018, the company has no amounts outstanding under its $450 million committed revolver as of the date of the transaction.
OpenText also amended and restated its revolver to increase operating flexibility by aligning its terms and conditions with those of the amended and restated term loan.
“We deeply appreciate the tremendous support of our existing and new lenders and the confidence that this commitment reflects in our business,” said OpenText Vice-Chair, CEO and CTO Mark J. Barrenechea. “This transaction reflects the company’s strong performance and further enhances our financial flexibility as we continue to execute on our total growth strategy.”
OpenTexta enables companies to manage, leverage and secure their enterprise information, on premises or in the cloud, through its Enterprise Information Management software and solutions.
