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LONG-TERM DEBT | 3 Months Ended
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Sep. 30, 2020
Debt Disclosure [Abstract] |
LONG-TERM DEBT | LONG-TERM DEBT
| As of September 30, 2020 |  | As of June 30, 2020
Total debt |  |  |
Senior Notes 2030 | $ | 900,000 |  |  | $ | 900,000 |
Senior Notes 2028 | 900,000 |  |  | 900,000 |
Senior Notes 2026 | 850,000 |  |  | 850,000 |
Term Loan B | 975,000 |  |  | 977,500 |
Revolver | 600,000 |  |  | 600,000 |
Total principal payments due | 4,225,000 |  |  | 4,227,500 |
Premium on Senior Notes 2026 | 4,587 |  |  | 4,756 |
Debt issuance costs | (36,664) |  |  | (37,945) |
Total amount outstanding | 4,192,923 |  |  | 4,194,311 |
Less: |  |  |
Current portion of long-term debt |  |  |
Term Loan B | 10,000 |  |  | 10,000 |
Revolver | 600,000 |  |  | 600,000 |
Total current portion of long-term debt | 610,000 |  |  | 610,000 |
Non-current portion of long-term debt | $ | 3,582,923 |  |  | $ | 3,584,311 |
Senior Unsecured Fixed Rate Notes Senior Notes 2030 On February 18, 2020, OpenText Holdings, Inc. a wholly-owned indirect subsidiary of the Company, issued $900 million in aggregate principal amount of 4.125% Senior Notes due 2030 guaranteed by the Company (Senior Notes 2030) in an unregistered offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (Securities Act), and to certain persons in offshore transactions pursuant to Regulation S under the Securities Act. Senior Notes 2030 bear interest at a rate of 4.125% per annum, payable semi-annually in arrears on February 15 and August 15, commencing on August 15, 2020. Senior Notes 2030 will mature on February 15, 2030, unless earlier redeemed, in accordance with their terms, or repurchased. For the three months ended September 30, 2020, we recorded interest expense of $9.2 million relating to Senior Notes 2030. Senior Notes 2028 On February 18, 2020, we issued $900 million in aggregate principal amount of 3.875% Senior Notes due 2028 (Senior Notes 2028) in an unregistered offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act and to certain persons in offshore transactions pursuant to Regulation S under the Securities Act. Senior Notes 2028 bear interest at a rate of 3.875% per annum, payable semi-annually in arrears on February 15 and August 15, commencing on August 15, 2020. Senior Notes 2028 will mature on February 15, 2028, unless earlier redeemed, in accordance with their terms, or repurchased. For the three months ended September 30, 2020, we recorded interest expense of $8.6 million relating to Senior Notes 2028. Senior Notes 2026 On May 31, 2016, we issued $600 million in aggregate principal amount of 5.875% Senior Notes due 2026 (Senior Notes 2026) in an unregistered offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act and to certain persons in offshore transactions pursuant to Regulation S under the Securities Act. Senior Notes 2026 bear interest at a rate of 5.875% per annum, payable semi-annually in arrears on June 1 and December 1, commencing on December 1, 2016. Senior Notes 2026 will mature on June 1, 2026, unless earlier redeemed, in accordance with their terms, or repurchased. On December 20, 2016, we issued an additional $250 million in aggregate principal amount by reopening our Senior Notes 2026 at an issue price of 102.75%. The additional notes have identical terms, are fungible with and are a part of a single series with the previously issued $600 million aggregate principal amount of Senior Notes 2026. The outstanding aggregate principal amount of Senior Notes 2026, after taking into consideration the additional issuance, is $850 million. For the three months ended September 30, 2020, we recorded interest expense of $12.5 million relating to Senior Notes 2026 (three months ended September 30, 2019—$12.5 million). Term Loan B On May 30, 2018, we refinanced our existing term loan facility, by entering into a new $1 billion term loan facility (Term Loan B), whereby we borrowed $1 billion on that day and repaid in full the loans under our prior $800 million term loan facility originally entered into on January 16, 2014. Borrowings under Term Loan B are secured by a first charge over substantially all of our assets on a pari passu basis with the Revolver (defined below). Term Loan B has a seven year term, maturing in May 2025, and repayments made under Term Loan B are equal to 0.25% of the principal amount in equal quarterly installments for the life of Term Loan B, with the remainder due at maturity. Borrowings under Term Loan B currently bear a floating rate of interest equal to 1.75% plus LIBOR. As of September 30, 2020, the outstanding balance on the Term Loan B bears an interest rate of 1.91%. For more information regarding the impact of LIBOR, see "Stress in the global financial system may adversely affect our finances and operations in ways that may be hard to predict or to defend against" included within "Risk Factors" in our Annual Report on Form 10-K for Fiscal 2020. Under Term Loan B, we must maintain a “consolidated net leverage” ratio of no more than 4:1 at the end of each financial quarter. Consolidated net leverage ratio is defined for this purpose as the proportion of our total debt reduced by unrestricted cash, including guarantees and letters of credit, over our trailing twelve months net income before interest, taxes, depreciation, amortization, restructuring, share-based compensation and other miscellaneous charges. As of September 30, 2020, our consolidated net leverage ratio was 1.8:1. For the three months ended September 30, 2020, we recorded interest expense of $4.8 million relating to Term Loan B (three months ended September 30, 2019—$10.1 million). Revolver On October 31, 2019, we amended our committed revolving credit facility (the Revolver) to increase the total commitments under the Revolver from $450 million to $750 million as well as to extend the maturity from May 5, 2022 to October 31, 2024. Borrowings under the Revolver are secured by a first charge over substantially all of our assets, on a pari passu basis with Term Loan B. The Revolver has no fixed repayment date prior to the end of the term. Borrowings under the Revolver bear interest per annum at a floating rate of LIBOR plus a fixed margin dependent on our consolidated net leverage ratio ranging from 1.25% to 1.75%. As of September 30, 2020, the outstanding balance on the Revolver bears an interest rate of 1.90%. For more information regarding the impact of LIBOR, see "Stress in the global financial system may adversely affect our finances and operations in ways that may be hard to predict or to defend against" included within "Risk Factors" in our Annual Report on Form 10-K for Fiscal 2020. Under the Revolver, we must maintain a “consolidated net leverage” ratio of no more than 4:1 at the end of each financial quarter. As of September 30, 2020, our consolidated net leverage ratio was 1.8:1. As of September 30, 2020, we had outstanding borrowings of $600 million under the Revolver (June 30, 2020—$600 million) and $150 million remaining available to be drawn. The proceeds from the $600 million draw down are presented within "Cash and cash equivalents" and within the "Current portion of long-term debt" in our Condensed Consolidated Balance Sheets as of September 30, 2020 and June 30, 2020. Following the end of the quarter, in October 2020 we repaid the $600 million drawn under the Revolver using cash on hand. Please see note 25 "Subsequent Events". During the three months ended September 30, 2020, we recorded interest expense relating to amounts drawn of $3.0 million. As of September 30, 2019, we had no outstanding balance on the Revolver. There was no activity during the three months ended September 30, 2019 and we recorded no interest expense. Debt Issuance Costs and Premium on Senior Notes Debt issuance costs relate primarily to costs incurred for the purpose of obtaining our credit facilities and issuing our Senior Notes 2026, Senior Notes 2028 and Senior Notes 2030 (collectively referred to as the Senior Notes) and are being amortized over the respective terms of the Senior Notes and Term Loan B and the Revolver using the effective interest method. The premium on Senior Notes 2026 represents the excess of the proceeds received over the face value of Senior Notes 2026. This premium is amortized as a reduction to interest expense over the term of Senior Notes 2026 using the effective interest method.

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