iGATE Announces Pricing of Senior Notes to Fund Patni Acquisition
April 15 2011 - 12:05AM
iGATE Corporation (Nasdaq:iGTE) ("iGATE") announced today that it
priced an offering (the "Offering") of $770 million aggregate
principal amount of 9% senior notes due 2016
(the "Notes"). The Notes were priced at par value and
will bear interest at a rate of 9% per annum payable semi-annually
on May 1 and November 1, commencing on November 1, 2011.
The Notes will be the senior obligations of iGATE and will be
guaranteed by certain of iGATE's existing and future wholly-owned
U.S. subsidiaries. iGATE intends to use the proceeds of the
Offering to partially fund the previously announced and pending
acquisition (the "Patni Acquisition") of a majority stake in Patni
Computer Systems Limited (NSE:PATNI) (NYSE:PTI) ("Patni").
iGATE believes that the proceeds of the Offering along with
investments by Viscaria Limited on terms previously announced and
cash on hand are sufficient to fund the Patni Acquisition.
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.
This press release is for informational purposes only and does
not constitute an offer to sell the Notes, nor a solicitation for
an offer to purchase the Notes, nor shall there be any sales of
Notes in any jurisdiction in which such offer, solicitation or sale
would be unlawful prior to registration or qualification under the
securities laws of any such jurisdiction.
Forward-Looking Statements:
Statements contained in this press release regarding the
Offering, the Patni Acquisition, and all other statements in this
release other than recitation of historical facts are
forward-looking statements. Words such as "expect,"
"potential," "believes," "anticipates," "plans," "intends" and
similar expressions are intended to identify such forward-looking
statements. Any forward-looking statement contained herein, in
other press releases, written statements or documents filed with
the Securities and Exchange Commission (the "SEC"), or in iGATE
communications with and discussions with investors and analysts in
the normal course of business through meetings, phone calls and
conference calls are subject to known and unknown risks,
uncertainties and contingencies. Forward-looking statements
in the press release include, without limitation, iGATE's beliefs,
expectations, intentions and/or plans regarding future events,
including iGATE's plans to conduct the Offering to partially fund
the Patni Acquisition and to pay related fees and expenses, and
other matters that involve known and unknown risks, uncertainties
and other factors that may cause results, levels of activity,
performance or achievements to differ materially from results
expressed or implied by this press release. Such risk factors
include, among others difficulties, delays, unexpected costs or the
inability of iGATE to consummate the Offering of the Notes and the
related guarantees; difficulties encountered in integrating Patni's
business; uncertainties as to the timing of the Patni Acquisition,
including the consummation of the public offer under the Indian
Takeover Regulations and the tender offer under U.S. securities
laws; the satisfaction of the closing conditions to the
transaction, including the receipt of regulatory approvals; whether
certain market segments grow as anticipated; the competitive
environment in the information technology services industry and
competitive responses to the Patni Acquisition; and whether the
companies can successfully provide services/products and the degree
to which these gain market acceptance. Additional risks
relating to iGATE are set forth in iGATE's Annual Report on Form
10-K for the fiscal year ended December 31, 2010, as well as
iGATE's other reports filed with the SEC. Actual results may
differ materially from those contained in the forward-looking
statements in this press release. Any forward-looking
statements are based on information currently available to iGATE
and it assumes no obligation to update these statements as
circumstances change.
Additional U.S.-Related Information
The information contained herein is neither an offer to purchase
nor a solicitation of an offer to sell shares of Patni or iGATE or
any of their respective subsidiaries or affiliates. iGATE has filed
tender offer documents with the SEC in connection with the Patni
Acquisition. Shareholders of Patni should read those
filings, and any other filings made by iGATE with the SEC in
connection with the Patni Acquisition, as they will contain
important information. Those documents, when filed, as
well as iGATE Corporation's other public filings with the SEC, may
be obtained without charge at the SEC's website at www.sec.gov and
at iGATE Corporation's website at www.igate.com.
The iGATE Corporation logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=5150
CONTACT: Media Contact:
Prabhanjan Deshpande "PD"
+91 80 4104 5006
pr@igate.com
Investor Contact:
Araceli Roiz
+1 510 896 3007
+91 97409 43004
araceli.roiz@igate.com
Igate (NASDAQ:IGTE)
Historical Stock Chart
From May 2024 to Jun 2024
Igate (NASDAQ:IGTE)
Historical Stock Chart
From Jun 2023 to Jun 2024