ISELIN, New Jersey, November 25, 2013 /PRNewswire/ --
iGATE Corporation ("iGATE" or "the Company"), the first integrated technology and operations company providing outcomes-based solutions, today announced that on November 22, 2013 (the "Closing Date"), Pan-Asia iGATE Solutions ("Pan-Asia"), a 100% owned subsidiary of iGATE, entered into a credit agreement (the "Credit Facility") for a secured term loan facility with DBS Bank Ltd and ING Bank N.V., Singapore (the lenders) with ING Bank N.V., Singapore, as security agent (the "Security Agent"). The Company, along with several of its 100% owned subsidiaries, has entered into a Guaranty (the "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, Facility 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 and Chief Executive Officer 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.