DBS and ING Provide Facility to iGATE
iGATE announced that subsidiary Pan-Asia iGATE Solutions entered into a credit agreement for a secured term loan facility with DBS Bank and ING Bank N.V. Singapore, with ING acting as security agent.
The company, along with several 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 facility A and B. Facility A has a commitment amount of $270 million and an interest rate of LIBOR+3.25%, and facility B has a commitment amount of $90 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 and CEO of 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 in turn will be applied towards a refinancing of indebtedness under the senior notes and existing credit facilities agreements, subject to the terms of the credit facility.
iGATE Corporation is an integrated technology and operations (iTOPS) company providing consulting, technology and business process outsourcing, and product and engineering solutions on a business outcomes-based model.