Open Text Corporation provides a suite of business information software products. Exhibit 10-9 contains Note 10 from the company’s 2013 annual report detailing long-term debt.
a. Open Text had a U.S. $100-million revolving credit facility in place at June 30, 2013, which the company referred to as “the Revolver” in the notes to its financial statements. What is a revolving credit facility?
b. What amount of “the Revolver” had been used at June 30, 2013? What is the maximum amount Open Text could access through “the Revolver”?
c. Open Text also had a U.S. $600-million term loan facility in place at June 30, 2013. What was the amount of the principal outstanding?
d. The term loan had a five-year term, so why did the company present a portion of the term loan as a current liability?
e. The company also had an outstanding mortgage at June 30, 2013. Was this mortgage secured? Did it require blended repayments?

  • CreatedJune 12, 2015
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