CGI announced the pricing of an offering of US$650 million in aggregate principal amount of 5-year senior unsecured notes. These notes will bear interest at a rate of 4.95% per annum, which corresponds to the treasury rate plus 100 basis points. Concurrently, CGI expects to enter into a currency swap agreement to reduce the Canadian dollar equivalent cost of borrowing to 3.7125% per annum.
The offering is anticipated to close on or about March 14, 2025, subject to customary closing conditions. The net proceeds from this offering are expected to be approximately US$641.3 million, after deducting initial purchasers' fees and estimated offering expenses. This capital infusion provides CGI with significant financial resources.
CGI intends to utilize the net proceeds from this offering to repay existing indebtedness and for general corporate purposes. This financing move enhances the company's liquidity and financial flexibility, supporting its ongoing 'Build and Buy' profitable growth strategy and operational needs. The favorable interest rate achieved through the currency swap is a positive for the company's cost of capital.
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