Open Text completes acquisition financing
On December 19, 2016, Open Text Corporation ("OpenText") completed a previously announced cross-border public offering of 9,905,302 common shares (which included 655,302 shares issued as a result of the exercise of the over-allotment option by the underwriters) at a price of US$61.00 per share, for gross proceeds of approximately US$604 million.
The following day, December 20, 2016, OpenText completed a contemporaneous US$250 million private reopening of its aggregate principal amount of 5.875% senior unsecured notes due 2026, guaranteed on a senior unsecured basis by OpenText's existing and future wholly-owned subsidiaries that borrow or guarantee Open Text's obligations under its existing senior credit facilities. The notes had identical terms, were fungible with and were a part of a single series with the US$600 million principal amount of the 5.875% senior unsecured notes due 2026 issued by Open Text on May 31, 2016.
OpenText intends to use the net proceeds from both offerings to finance the purchase price for its previously announced acquisition of Dell EMC's Enterprise Content Division. Neither offering is contingent on the closing of the acquisition and if, for any reason, the acquisition does not close, OpenText intends to use the proceeds for general corporate purposes, which may include the financing of future acquisitions and the repayment of existing indebtedness.
OpenText is the largest independent software provider of Enterprise Information Management (EIM).
Further information can be found on Canada Newswire's website: Public Offering and Note Reopening.