By Marisa Wong and Cristal Cody
Los Angeles, Sept. 10 – CGI Inc. priced $1 billion of senior notes (Baa1/BBB+) on Thursday, according to a company news release.
CGI will issue $600 million of five-year notes and $400 million of 10-year notes.
The five-year notes will bear interest at 1.45% and priced with a spread of 70 basis points over Treasuries, tighter than talk that was in the Treasuries plus 90 bps to 95 bps area, according to a market source.
The 10-year notes carry a coupon of 2.3% and priced with a spread of 105 bps over Treasuries, which was tighter than talk that was in the 120 bps to 125 bps area over Treasuries.
Bookrunners are JPMorgan, Scotia Capital and TD Securities.
The offering is expected to close on or about Sept. 14.
CGI plans to use proceeds to repay C$1,245,000,000 of debt under its term loan maturing in March 2023.
The notes will be offered in the United States under Rule 144A and Regulation S and will be sold in Canada on a private placement basis.
CGI is an information technology and business consulting services firm based in Montreal.
| Issuer: | CGI Inc.
|
| Amount: | $1 billion
|
| Description: | Senior notes
|
| Bookrunners: | JPMorgan, Scotia Capital and TD Securities
|
| Announcement date: | Sept. 9
|
| Settlement date: | Sept. 14
|
| Ratings: | Moody’s: Baa1
|
| S&P: BBB+
|
| Distribution: | Rule 144A and Regulation S; Canadian private placement
|
|
|
| Five-year notes
|
| Amount: | $600 million
|
| Maturity: | Sept. 14, 2026
|
| Coupon: | 1.45%
|
| Spread: | Treasuries plus 70 bps
|
| Price talk: | Treasuries plus 90 bps to 95 bps area
|
|
|
| 10-year notes
|
| Amount: | $400 million
|
| Maturity: | Sept. 14, 2031
|
| Coupon: | 2.3%
|
| Spread: | Treasuries plus 105 bps
|
| Price talk: | Treasuries plus 120 bps to 125 bps area
|
|
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
