2.4.0.8114 - Disclosure - Borrowingstruefalsefalse1false falsefalseeol_PE11654---1310-Q0007_STD_181_20130630_0http://www.sec.gov/CIK0001024732duration2013-01-01T00:00:002013-06-30T00:00:001false 4us-gaap_DebtDisclosureTextBlockus-gaap_truenadurationfalsefalsefalsefalsefalsefalsefalsefalseterseLabel1falsefalsefalse00<div> <table style="BORDER-COLLAPSE:COLLAPSE" border="0" cellpadding="0" cellspacing="0" width="100%"> <tr> <td width="4%" valign="top" align="left">6.</td> <td align="left" valign="top">Borrowings</td> </tr> </table> Line of Credit On February 21, 2011, the Company entered into an arrangement with a bank for availing an unsecured revolving working credit facility of $70 million at an annual interest rate of LIBOR plus 195 basis points. The interest rate was initially renewed on an annual basis and is now renewed periodically. This facility was renewed and the interest rate was changed to LIBOR plus 115 basis points with effect from March 25, 2013. As of June 30, 2013, the Company had borrowed $52 million under this line of credit at a weighted average interest rate of 1.4%. Interest expense for the three months ended June 30, 2013 and 2012 was $0.20 million and $0.06 million, respectively and interest expense for six months ended June 30, 2013 and 2012 was $0.40 million and $0.23 million, respectively. On May 10, 2011, the Company entered into a credit agreement with a bank for revolving credit commitments in an aggregate principal U.S. Dollar equivalent of $50 million, maturing on May 10, 2016. The proceeds are to be used for working capital and other general corporate purposes. This facility carries an interest rate of LIBOR plus 280 basis points. As of June 30, 2013, the Company had borrowed $25 million under this revolving credit arrangement at an interest of 3.0%. Interest expense for each of the three months ended June 30, 2013 and 2012 was $0.04 and interest expense for six months ended June 30, 2013 and 2012 was $0.3 million and $0.08 million, respectively. As of June 30, 2013, the Company has a line of credit facility of approximately $10.3 million with a bank for requirements such as pre and post shipment loans, export bill discounting, overdrafts, working capital demand loans and financial and performance guarantees. This facility bears interest in accordance with rates negotiated with the bank from time to time. This facility is secured by the Company’s accounts receivables, and amounts outstanding are payable on demand to the bank upon breach of the terms and conditions of the credit facility letter. As of June 30, 2013, $9.6 million was unutilized under this line of credit facility and the amount utilized was availed in the form of a bank guarantee. Term Loans On April 3, 2012, Pan-Asia iGATE Solutions (“Pan-Asia”) entered into an agreement for a secured term loan facility with DBS Bank LTD., Singapore, as an administrative agent, in an aggregate principal U.S. Dollar equivalent of $265 million maturing on June 8, 2014. This facility was guaranteed by the Company and several of its 100% owned subsidiaries and was undertaken to finance Pan-Asia’s purchase of the remaining publicly traded equity shares of iGATE Computer. As of June 30, 2013, Pan-Asia repaid the term loan amount along with the bank guarantee and has no outstanding amount under this term loan facility. In connection with the term loan, the Company recorded an interest expense of $0.8 million and $2.5 million for the three and six months ended June 30, 2013 and $1.7 million each for the three and six months ended June 30, 2012. The Company incurred debt issuance costs of $4.8 million of which the amount amortized was $3.3 million and $4.0 million for the three and six months ended June 30, 2013, respectively and $0.2 million for each of the three and six months ended June 30, 2012. The Company repaid the term loan facility during the second quarter 2013 and expensed all unamortized debt issue costs. On August 29, 2012, iGATE Technologies Inc (“iTI”), borrowed $70 million from a bank to finance the purchase of iGATE Americas Inc (“iAI”). The loan matures on February 28, 2014, is repayable over a period of 18 months and currently carries an interest rate of LIBOR plus 280 basis points payable at the end of each interest period. The loan documents contain customary representations and warranties, events of default and affirmative and negative covenants, and the loan is guaranteed by the Company and several of its 100% owned domestic subsidiaries. As of June 30, 2013, the interest rate was 3.0% and the Company recorded an interest expense for $0.5 million and $1.0 million for the three and six months ended June 30, 2013, respectively. In connection with this term loan, the Company incurred debt issuance costs of $0.8 million of which $0.3 million is accounted for as part of prepaid expenses and other current assets. These costs are being amortized to interest expense over the respective term of the loan using the effective interest method. The amount amortized was $0.1 million and $0.3 for the three and six months ended June 30, 2013, respectively. As of June 30, 2013, the Company was in compliance with all covenants associated with the aforementioned borrowings. </div>falsefalsefalsenonnum:textBlockItemTypenaThe entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 19, 20, 22 -Article 5 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.19,20,22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 false0BorrowingsfalseBorrowingsUnKnownUnKnownUnKnownUnKnowntruefalsefalseSheethttp://www.igate.com/taxonomy/role/NotesToFinancialStatementsDebtDisclosureTextBlock11