OpenText Announces Proposed Public Offering of Common Shares

Open Text Corporation announced that it has launched an underwritten public offering of U.S. $500 million of common shares (the "Offering").  The Company intends to grant the underwriters a 30-day option to purchase up to an additional U.S. $75 million of common shares to cover over-allotments, if any.

OpenText intends to use the net proceeds from the Offering to finance a portion of the purchase price for its previously announced acquisition of Dell EMC's Enterprise Content Division (the "Acquisition").  OpenText expects to fund the balance of the purchase price and pay related fees and expenses with the net proceeds from debt financing and cash on hand.  The terms of any debt financing, which may include the issuance of new senior notes or the reopening of existing senior notes and/or borrowing under our existing or new credit facilities, have not been established at this time.  The Offering is not contingent on the closing of the Acquisition or any debt financing.  If for any reason the Acquisition does not close, OpenText intends to use the net proceeds from the Offering for general corporate purposes, which may include the financing of future acquisitions and the repayment of existing indebtedness.

Barclays, Citigroup and RBC Capital Markets are acting as the joint book-running managers for the Offering.

Click here for Printer Friendly Version