Open Text Corporation has issued a conditional notice of redemption covering $1.0 billion principal amount of its outstanding 6.900% Senior Secured Notes due 2027, with the redemption in full set for October 2, 2026. The redemption is subject to the satisfaction or waiver of certain conditions, including receipt of net proceeds from one or more offerings of debt securities sufficient to pay the redemption price and other amounts owed, a condition known as the Financing Condition. The redemption price equals the greater of 100% of the principal amount of the 2027 Notes to be redeemed and a make-whole amount based on the present value of remaining scheduled principal and interest payments discounted to the redemption date at the treasury rate plus 50 basis points, less accrued interest, plus accrued and unpaid interest to but excluding the redemption date. OpenText also said it is exploring a potential offering of senior secured notes under Rule 144A and Regulation S, and expects to use the net proceeds to fund the redemption of the 2027 Notes, including the applicable redemption premium, accrued and unpaid interest and related costs and expenses, with any remaining proceeds used for general corporate purposes. The company noted the press release does not constitute a notice of redemption under the indenture and that there can be no assurances the redemption will be effected as described.
Open Text CorpOpenText issued a conditional redemption notice for $1.0B of 2027 notes, funded by a potential new senior secured notes offering — a debt refinancing/liability-management event.
