iGATE signs another "Credit Agreement"

VARINDIA- INDIA'S FRONTLINE IT MAGAZINE

 

iGATE Corporation has entered into a credit agreement for a secured term loan facility with DBS Bank Ltd and ING Bank N.V., Singapore as security agent for pan-Asia iGATE Solutions on November 22, 2013. The Company, along with several of its subsidiaries, has entered into a guaranty with the Security Agent, under which the Company has guaranteed all of the obligations of pan-Asia under the Credit Facility.

The Credit Facility has two components iFacility A and Facility B. Facility A has a commitment amount of $270.0 million and an interest rate of LIBOR+3.25% and Facility B has a commitment amount of $90.0 million and an interest rate of LIBOR+2.00%. Facility A will mature 60 months from utilization date, while Facility B will mature 9 months from utilization date. The Credit Facility contains customary representations and warranties, events of default and affirmative, negative covenants and financial covenants.

Ashok Vemuri, President & Chief Executive Officer, iGATE, said, We are very happy to announce the signing of a credit agreement which we expect to lower our financial leverage and create shareholder value by refinancing the indebtedness under the Senior Notes and Existing Credit Facilities Agreements. We expect this will result in significant interest savings in the years to come.

After the closing date, the Credit Facility will be available to enable pan-Asia to repay a capital contribution to its parent company which will, in turn, be applied towards a refinancing of indebtedness under the Senior Notes and Existing Credit Facilities Agreements, subject to the terms of the Credit Facility.......See More