HCL America, a subsidiary of information technology (IT) services giant HCL Technologies, has issued a $500 million offering of 1.375% senior notes, due 2026.
The company’s aggregate potential liability under the guarantee is capped at $525 million, which is 105% of the total aggregate principal amount of the notes, HCL said in a statement.
The notes are backed by a corporate guarantee of the company and are proposed to be listed on the Singapore Stock Exchange. The corporate guarantee will be treated as a contingent liability for the company, the statement added.
The funds will be utilised to refinance the existing debts and for general corporate purposes of its India businesses as well as affiliates outside the country, HCL said earlier this month.
The proposal of the offering was approved by the company’s board of directors on February 25, 2021.
HCL Technologies reported a 34.8% growth in profit in the third quarter ended December 2020, a period when the company signed 13 new transformational deals. Its profit attributable to shareholders rose to Rs 3,969 crore, or Rs 14.63 per share, in the reported quarter, from Rs 2,944 crore, or Rs 10.85 per share, a year earlier. Revenue from operations rose 6.4% to Rs 19,302 crore.
HCL expects revenue to grow between 2% and 3% sequentially on a constant currency basis, in the fourth quarter ending March 2021, a period that will include the revenue contribution from its acquisition of Australian IT solutions firm DWS.
For the calendar year 2020, HCL Tech’s revenue stood at $10.02 billion, up 3.6% year-on-year in the US and constant currency terms. Meanwhile, its net profit witnessed a YoY increase of 19.8% to $1.78 billion.