iGate in revamp mode

Information technology (IT) company iGate would move from a functional to a vertical structure, based on industries and geographies.

Ashok Vemuri, the new president and chief executive, on Monday said this would take a few weeks to get finalised.

The company would have the structure in North America. Outside North America, including Europe, however, there would be no verticals.

To refinance some high-interest loans
iGate said it had signed a pact to raise secured term loans of $360 million, to refinance part of the loan it had taken to acquire Patni Computer Systems.

The company said the facility, with an interest rate of three per cent on an average, would help it to service some high-interest loans.

According to Vemuri, the company has a debt of $770 million, with an interest rate of nine per cent on an average. With refinancing, the company would be able to save $21.6 million a year. Pan-Asia iGate Solutions, a fully-owned subsidiary, has entered a credit pact with DBS Bank and ING Bank NV Singapore. The facility will have two components: A commitment of $270 million with an interest of 3.5 per cent and a commitment of $90 million, interest 2.25 per cent.