Financing in connection with acquisition of stake in Patni Computer
By Devika Patel
Knoxville, Tenn., April 4 - iGate Corp. gave further details about a private placement of 8% series B convertible participating preferred stock in an 8-K filed Monday with the Securities and Exchange Commission. Viscaria Ltd. is the investor for the deal, which was announced Jan. 12 and is expected to raise up to $480 million.
The preferreds will be convertible into common shares at an initial conversion price of $20.30 per share. The rate represents a premium of 24.85% to the company's closing share price of $16.26 on Jan. 12.
The company will have the option to convert the preferreds after 18 months, subject to a 205% hurdle.
iGate said it intends to first close on $210 million of the securities and then $60 million of the series B preferreds in a second tranche. It also may sell an additional $210 million of the preferreds at the second closing.
iGate announced in January that its subsidiaries executed definitive agreements to acquire a majority stake in Patni Computer Systems Ltd., the Mumbai-based IT services and business process outsourcing company, in a transaction valued at $1.22 billion.
The acquisition is expected to be completed in the first half of 2011.
iGate is a Freemont, Calif.-based technology and operations solutions provider.
| Issuer: | iGate Corp.
|
| Issue: | Series B convertible participating preferred stock
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| Amount: | $480 million
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| Dividend: | 8%
|
| Conversion price: | $20.30
|
| Call: | Forced conversion after 18 months subject to 205% hurdle
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| Investor: | Viscaria Ltd.
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| Announcement date: | Jan. 12
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| Stock price: | $16.26 at close Jan. 12
|
| Stock symbol: | Nadaq: IGTE
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| Market capitalization: | $908.54 million
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