OpenText Completes $2B Debt Reduction
Portfolio Pulse from Benzinga Newsdesk
Open Text Corporation (OTEX) has completed a $2 billion debt reduction using proceeds from its AMC divestiture. This includes $940 million to terminate its Term Loan B due 2025 and $1.06 billion to reduce its Acquisition Term Loan due 2030.
May 08, 2024 | 1:07 pm
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POSITIVE IMPACT
Open Text Corporation has significantly reduced its debt by $2 billion, improving its financial health and potentially its stock attractiveness.
Reducing debt improves a company's balance sheet and is generally viewed positively by investors as it decreases financial risk. The substantial amount of $2 billion in debt reduction could lead to improved financial ratios, potentially making OTEX more attractive to investors. This strategic financial move could signal stronger future performance and stability, thus likely to positively impact the stock price in the short term.
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