CGI Group to Raise $475M in Debt Financing

CGI Group Inc. (NYSE: GIB) has entered a $475 million debt placement with six U.S. private investors.

The company will use some placement proceeds to pay down part of the its revolving term facility, which matures in August 2012.

The placement has three tranches of guaranteed senior unsecured notes. The tranches have a weighted average maturity of 8.2 years and a weighted average fixed coupon of 4.57 percent.

The company will draw down the proceeds no later than Dec. 15, 2011, and plans to execute interest rate swaps to reduce financing costs and maximize flexibility.

“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 CGI Group President and CEO Michael E. Roach.

Check Also

Vigor

Vigor Industrial Subsidiary to Modernize Navy Destroyer Ship Under Potential $156M Contract

Vigor Industrial's marine subsidiary has secured a potential $155.6M firm-fixed-price contract to help the U.S. Navy modernize and maintain the USS McCampbell guided missile destroyer. The company will update the ship's mechanical and electrical systems, hull and communications, digital video surveillance and warfighting equipment as part of a depot maintenance availability, the Department of Defense said Monday.

Parsons

Parsons Gets $178M Intell Community Security Analysis IDIQ; Robert Miller Quoted

Parsons (NYSE: PSN) has secured a potential five-year, $178M contract to help the U.S. intelligence community analyze measures for securing physical and technical assets.