Bangalore: Nasdaq-listed software services firm iGate Corp said on Friday it plans to raise $325 million in senior notes that expire in 2019 to help repay its total debt due in 2016.

In a regulatory filing on Nasdaq, iGate said it plans to use the net proceeds of the offering, its existing cash, the proceeds of its $360-million term loan from 2013, and its existing credit facility to repay its $770-million debt.

In November, iGate had signed a $360 million refinancing deal comprising two separate credit facilities—$270 million at an interest rate of roughly 3.5% for five years and $90 million at the rate of 2.25%.

Last year, iGate chief executive Ashok Vemuri, a former board member of Infosys Ltd, had promised investors that the Fremont, California-based firm would pay off debt worth $150-200 million in the near term.

iGate accumulated most of its current debt when it bought larger peer Patni Computer Systems in 2011 under former CEO Phaneesh Murthy.

Murthy, who also is a former board member of Infosys, was fired last year by iGate’s board for failing to disclose a relationship with a subordinate employee.

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