Open Text Corporation announced the Company and certain of its subsidiaries entered into a USD $700 million amended and restated credit agreement. The agreement provides for a USD $600 million term loan facility and a USD $100 million committed revolving credit facility. OpenText has appointed Barclays Capital and RBC Capital Markets as Joint Lead Arrangers and Joint Bookrunners.
The term loan has a 5 year term and repayments are equal to 1.25% of the original principal amount at each quarter for the first 2 years, and subsequently increases thereafter. The revolver has a 5 year term with no fixed repayment date prior to the end of the term.
The agreement provides for customary events of default with corresponding grace periods, and customary representations and warranties and affirmative and negative covenants including, among others, covenants relating to financial reporting, conduct of business, fundamental changes, incurrence of indebtedness, incurrence of encumbrances and maintenance of certain financial ratios.
The Company used part of the proceeds from the term loan to repay all of its existing credit facility in the amount of USD $332.8 million.
