iGATE Corporation (Nasdaq: IGTE) ("iGATE") announced today that it priced an offering (the "Offering") of $325 million in aggregate principal amount of 4.75% senior notes due 2019 (the "Notes"). The Notes were priced at par value and will bear interest at a rate of 4.75% per annum payable semi-annually on April 15 and October 15, commencing on October 15, 2014.
The Notes will be the senior obligations of iGATE and will be guaranteed by certain of iGATE's existing and future -100% owned U.S. subsidiaries. iGATE intends to use the net proceeds of the Offering, together with cash, the proceeds from its 2013 term loan and a drawdown of its revolving credit facility, to redeem its $770 million 9.0% senior notes due 2016.
Ashok Vemuri, President and Chief Executive Officer, iGATE, said, "We are pleased with the outcome of our refinancing effort of the senior notes. It is a strong validation of our business model by the investor community and will result in substantial interest cost savings going forward."
The Notes and the related guarantees will be offered in the United States to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), and outside the United States pursuant to Regulation S under the Securities Act. The Notes and the related guarantees have not been registered under the Securities Act, or any state securities laws, and, unless so registered, may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state securities laws.