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MONTREAL, Aug. 13 /CNW Telbec/ - CGI Group Inc. (TSX: GIB.A; NYSE: GIB)
announced today that it has successfully increased its credit facility to
$1.5 billion from the current $1.0 billion level. The expanded facility also
includes an accordion feature of $250 million, bringing the facility's
potential capacity to $1.75 billion.
The facility is in the form of a five-year revolver and can be extended
annually. The bank syndicate comprises 20 financial institutions located in
Canada, the United States, Europe and Asia.
"I'm pleased that this global network of banks continues to demonstrate
such a high degree of confidence in our ability to execute our build and buy
strategy," said Michael E. Roach, President and Chief Executive Officer. "We
were more than able to raise the desired amount of financing, in fact the
offering was oversubscribed. This is a significant achievement given the
recent volatility of the markets."
The bank syndicate expanded from 17 to 20 financial institutions, and is
being led by National Bank of Canada, JPMorgan Chase Bank, N.A. and Caisse
centrale Desjardins. The other participants include: Canadian Imperial Bank of
Commerce, The Toronto-Dominion Bank, Bank of America, N.A., Caisse de dépôt et
placement du Québec, KeyBank National Association, Bank of Montreal, Royal
Bank of Canada, ABN AMRO Bank N.V., Wachovia Bank, National Association,
United Overseas Bank Limited, Citibank N.A., Bank of Tokyo-Mitsubishi UFJ
(Canada), Société Générale, Sumitomo Mitsui Banking Corporation of Canada,
Comerica Bank, BNP Paribas and Deutsche Bank AG.
"Our ability to negotiate a larger credit facility on more favorable
terms and conditions, and with such a large array of partners globally,
demonstrates both the international reach of CGI and the confidence that the
market has in our plans for profitable growth. This new credit facility will
allow us to accelerate organic growth, generating large outsourcing and
systems integration contracts, while continuing to look at acquisitions that
meet our criteria of being accretive in the first year," concluded Roach.
Founded in 1976, CGI Group Inc. is one of the largest independent
information technology and business process services firms in the world. CGI
and its affiliated companies employ approximately 25,500 professionals. CGI
provides end-to-end IT and business process services to clients worldwide from
offices in Canada, the United States, Europe, Asia Pacific as well as from
centers of excellence in North America, Europe and India. CGI's annual revenue
run rate stands at $3.7 billion (US$3.5 billion) and at June 30th, 2007, CGI's
order backlog was $12.4 billion (US$11.6 billion). CGI shares are listed on
the TSX (GIB.A) and the NYSE (GIB) and are included in the S&P/TSX Composite
Index as well as the S&P/TSX Capped Information Technology and MidCap Indices.
All statements in this press release that do not directly and exclusively
relate to historical facts constitute "forward-looking statements" within the
meaning of that term in Section 27A of the United States Securities Act of
1933, as amended, and Section 21E of the United States Securities Exchange Act
of 1934, as amended, and are "forward-looking information" within the meaning
of sections 138.3 and following of the Ontario Securities Act, as amended.
These statements and this information represent CGI Group Inc.'s ("CGI")
intentions, plans, expectations and beliefs, and are subject to risks,
uncertainties and other factors, of which many are beyond the control of the
Company. These factors could cause actual results to differ materially from
such forward-looking statements or forward-looking information. These factors
include and are not restricted to the timing and size of new contracts,
acquisitions and other corporate developments; the ability to attract and
retain qualified members; market competition in the rapidly-evolving
information technology industry; general economic and business conditions,
foreign exchange and other risks identified in the Management's Discussion and
Analysis ("MD&A") in CGI's Annual Report or Form 40-F filed with the U.S.
Securities and Exchange Commission (filed on EDGAR at www.sec.gov), and in
CGI's annual and quarterly MD&A and Annual Information Form filed with the
Canadian securities authorities (filed on SEDAR at www.sedar.com), as well as
assumptions regarding the foregoing. The words "believe," "estimate,"
"expect," "intend," "anticipate," "foresee," "plan," and similar expressions
and variations thereof, identify certain of such forward-looking statements or
forward-looking information, which speak only as of the date on which they are
made. In particular, statements relating to future performance are
forward-looking statements and forward-looking information. CGI disclaims any
intention or obligation to publicly update or revise any forward-looking
statements or forward-looking information, whether as a result of new
information, future events or otherwise. Readers are cautioned not to place
undue reliance on these forward-looking statements or on this forward-looking
For further information:
For further information: Lorne Gorber, Vice-President, Global
Communications and Investor Relations, (514) 841-3355