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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.

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