NEW YORK: U.S.-based iGate on Friday said it will sell bonds worth $325 million (about 1,990 crore) to repay a $770 million (around 4,175 crore) debt.

In January, the NASDAQ-listed firm said that it had entered into a $360 million credit agreement in November 2013 and expects to take about $300-325 million additional debt towards the end of April 2014 in order to re-finance $770 million debt, which comes due in mid-May.

iGate said it "intends to offer, subject to market and other customary conditions, $325 million in aggregate principal amount of senior notes due 2019."

The notes will be the senior obligations of iGate and will be guaranteed by certain of iGate's existing and future wholly-owned US subsidiaries, it added.

"iGate intends to use the net proceeds of the offering, together with cash, the proceeds from its 2013 term loan and a draw on its revolving credit facility, to redeem its $770 million 9 per cent senior notes due 2016," it said.

For the year ended December 31, 2013, iGate had cash and cash equivalents of $746 million. Its total debt was $1.18 billion after it had paid around $78 million of debt during the October-December 2013 quarter.

"The notes and the related guarantees will be offered in the US to qualified institutional buyers pursuant and outside the US pursuant," iGate said in the statement.

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