CGI Group Inc., (TSX: GIB.A) (NYSE: GIB), a leading provider of information technology (IT) and business process services, today announced that it has entered into a US$475 million private debt placement financing with six large US private placement investors.
The private placement is comprised of three tranches of guaranteed senior unsecured notes, with a weighted average maturity of 8.2 years and a weighted average fixed coupon of 4.57%. The Company will draw down the proceeds no later than December 15, 2011, and plans to execute interest rate swaps subject to favorable market conditions in order to reduce its financing costs and maximize flexibility. The Company intends to use the proceeds of the private placement to pay down part of the Company’s existing revolving term facility which matures in August 2012.
"This private placement favorably diversifies our capital structure and provides additional long-term financial resources to support the ongoing execution of our Build and Buy profitable growth strategy,” said Michael E. Roach, President and Chief Executive Officer.
About CGI
Founded in 1976, CGI Group Inc. is one of the largest independent information technology and business process services firms in the world. CGI and its affiliated companies employ approximately 31,000 professionals. CGI provides end-to-end IT and business process services to clients worldwide from offices and centers of excellence in Canada, the United States, Europe and Asia Pacific. As at March 31, CGI's annualized revenue was approximately C$4.5 billion and its order backlog was approximately C$12.6 billion. CGI shares are listed on the TSX (GIB.A) and the NYSE (GIB) and are included in both the Dow Jones Sustainability Index and the FTSE4Good Index. Website: www.cgi.com.
-30-
For more information:
Lorne Gorber
Senior Vice-President, Global Communications and
Investor Relations
lorne.gorber@cgi.com
514-841-3355
