Open Text Corp. (OTEX), the content management company, is seeking $700 million of loans to refinance debt, according to a person with knowledge of the transaction.
The financing will include a $600 million term loan A and a $100 million revolving line of credit, said the person, who declined to be identified because the terms are private.
Barclays Bank Plc is arranging the deal for the Waterloo, Ontario-based company and will host a lender meeting Oct. 5 at 10 a.m. in New York.
A portion of the new debt will be used to refinance the company’s existing term piece due Oct. 2013 and repay borrowings under a revolving line of credit which were made to finance the acquisition of Global 360 Holdings Corp., according to a July 13 statement. Open Text acquired the provider of process and case management solutions for approximately $260 million.
Richard Maganini, a spokesman for Open Text, didn’t respond to an e-mail seeking comment.
In a revolving credit facility, money can be borrowed again once it’s repaid; in a term loan, it can’t. A term loan A is sold primarily to banks.
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