Open Text Corporation announced on September 22, 2026, that it has issued a conditional notice of redemption for $1.0 billion principal amount of its outstanding 6.900% Senior Secured Notes due 2027. The redemption is scheduled to occur on October 2, 2026, subject to the satisfaction of specific conditions outlined in the notice.
The redemption is contingent upon the company receiving net proceeds from one or more debt offerings sufficient to cover the redemption price and associated costs. OpenText stated that it may use cash on hand to fund any portion of the payment if the financing condition is otherwise met or waived.
The redemption price, known as the Redemption Amount, is calculated as the greater of 100% of the principal amount or the present value of remaining payments discounted at the treasury rate plus 50 basis points, less accrued interest. Upon successful redemption, the notes will be cancelled and the obligation extinguished.
In addition to the redemption, OpenText is exploring a potential offering of senior secured notes under Rule 144A and Regulation S. The company intends to use the net proceeds from this potential offering to fund the redemption, including the payment of any applicable premium and accrued interest. Any remaining proceeds are expected to be used for general corporate purposes, which may include repurchasing or repaying outstanding debt.
The company also indicated that it is currently seeking to amend its revolving credit agreement, with the expectation that the amendment will extend the maturity of the facility. The amendment remains subject to the execution of definitive documentation and the satisfaction of customary closing conditions.
