Loan Extensions

RNS Number : 9788S

Infrastructure India plc

28 June 2018

 

28 June 2018

Infrastructure India plc

("IIP", the "Company" and together with its subsidiaries the "Group")

Loan Extensions

Infrastructure India plc, an AIM quoted infrastructure fund investing directly into assets in India, announces that it has agreed the extensions to the maturity of: (i) an existing US$40.0 million unsecured bridging loan facility (the "Bridging Loan") originally provided to the Company in June 2017 by Cedar Valley Financial ("Cedar Valley"); and (ii) an existing US$21.5 million working capital loan (the "Working Capital Loan") originally provided to the Company in April 2013 by GGIC, Ltd ("GGIC")

Whilst negotiations have taken longer than originally anticipated, the Company continues to be in advanced negotiations with a third party in relation to a potential financing and  these discussions continue to progress. The new funding would enable the Company to repay the Bridging Loan as well as provide additional working capital and construction capital to Distribution Logistics Infrastructure Limited, a key subsidiary of the Company, and provide for the Group's general working capital needs.

The Company has agreed the terms of extensions to the maturity of the Bridging Loan (the "Bridging Loan Extension") and to the maturity of the Working Capital Loan (the "Working Capital Loan Extension").

Bridging Loan Extension

The Bridging Loan was originally provided to the Company in June 2017 by Cedar Valley in an amount of US$8.0 million and was subsequently increased to US$18.0 million in November 2017, to US$21.0 million in January 2018, to US$23.0 million in February 2018, to US$26.0 million in March 2018, to US$28.0 million in April 2018 and to US$40 million during May 2018.

The Bridging Loan currently carries an interest rate of 12.0% per annum on its fully drawn US$40.0 million principal and is due for repayment by the Company on the earlier of: (i) 15 days following the completion of a specific significant financing of IIP currently under negotiation; or (ii) 29 June 2018.

Pursuant to the Bridging Loan Extension, the Company and Cedar Valley have agreed to extend the maturity of the Bridging Loan such that the Bridging Loan will mature on the earlier of: (i) 15 days following the completion of a specific significant financing of IIP currently under negotiation; or (ii) 17 September 2018.

There is a commitment fee payable by IIP to Cedar Valley in connection with the Bridging Loan Extension of 1% of the Bridging Loan principal (the "Commitment Fee"). The Commitment Fee payable by IIP will therefore be US$400,000. The Bridging Loan Extension is structured such that the Commitment Fee will be rolled up by increasing the Bridging Loan principal to US$40.4 million.

The other terms of the Bridging Loan will remain unchanged. 

Working Capital Loan Extension

The Working Capital Loan was originally provided to the Company in April 2013 by GGIC in an amount of US$17 million in April 2013 and increased to US$21.5 million in September 2017.

The Working Capital Loan currently carries an interest rate of 7.5% per annum on its fully drawn down US$21.5 million principal and is due for repayment by the Company on 15 July 2018.

Pursuant to the Working Capital Loan Extension, the Company and GGIC have agreed to extend the maturity of the Working Capital Loan such that the Working Capital Loan will mature on 17 September 2018. The other terms of the Working Capital Loan will remain unchanged.

There are no arrangement or commitment fees payable by IIP in connection with the Working Capital Loan Extension.

Related Party Transactions

GGIC is, directly and indirectly, interested in 75.4% of the Company's issued share capital and Cedar Valley is an affiliate of GGIC. Under the AIM Rules for Companies ("AIM Rules") GGIC and Cedar Valley are, therefore, deemed to be a related parties of the Company and the Bridging Loan Extension and the Working Capital Loan Extension are related party transactions pursuant to Rule 13 of the AIM Rules. The independent directors of IIP, M.S. Ramachandran and Timothy Walker, consider, having consulted with Smith & Williamson Corporate Finance Limited in its capacity as the Company's nominated adviser, that the terms of the Bridging Loan Extension and the Working Capital Loan Extension are fair and reasonable insofar as the shareholders of IIP are concerned.

This announcement is inside information for the purposes of Article 7 of Regulation 596/2014.

Enquiries:

Infrastructure India plc        Sonny Lulla	www.iiplc.com
Smith & Williamson Corporate Finance Limited Nominated Adviser & Joint Broker Azhic Basirov / Ben Jeynes	[phone]
Nplus1 Singer Advisory LLP Joint Broker James Maxwell - Corporate Finance James Waterlow - Investment Fund Sales	[phone]
Novella	[phone]
Financial PR
Tim Robertson / Toby Andrews

 

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