Statement re Existing Loans

RNS Number : 0388P

Infrastructure India plc

04 February 2019

 

4 February 2019

Infrastructure India plc

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

Statement re Existing Loans

Infrastructure India plc, an AIM quoted infrastructure fund investing directly into assets in India, announces that, IIP has requested, but not yet been granted, a further extension of the date of maturity of the existing US$53.4 million unsecured bridging loan facility (the "Bridging Loan") and the existing US$21.5 million working capital loan (the "Working Capital Loan"),  both of which  mature on 4 February 2019.

IIP announced on 31 July 2018, that it had entered into conditional proposed financing agreements for up to US$125 million with PSA International, a global port group, and Gateway Partners (the "Proposed Financing"). The transaction related to the issue of convertible preference shares in Distribution Logistics Infrastructure India, Distribution Logistics Infrastructure Limited's ("DLI") parent company, for a consideration of US$75 million and the sale of 24% of DLI by the Group for a consideration of US$50 million ("Transaction"). IIP shareholders approved the terms of the Proposed Financing at an extraordinary general meeting held on 24 August 2018.

The Proposed Financing remained conditional on receipt of outstanding Indian regulatory and other approvals as at 30 January 2019, the long stop date under the Transaction documentation, and as a result the Transaction lapsed on 30 January 2019. The Board of IIP is currently examining the Company's alternatives, including re-engaging with PSA International and Gateway Partners.

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 in multiple tranches, most recently to US$53.4 million in January 2019.  The Bridging Loan carries an interest rate of 12.0% per annum on its fully drawn US$53.4 million principal and is due for repayment by the Company on the earlier of: (i) 15 days following the completion of the Proposed Financing; or (ii) 4 February 2019.

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 on 4 February 2019.

As a result of the continued delays in securing additional funding for DLI (IIP's unaudited cash balances as at 31 January 2018 were approximately £1.5m), DLI has (as previously announced) recently entered short term borrowing facilities in India and, in part, has begun to divert cash from operations in order to service DLI debt facilities. This latter action could affect DLI's operational performance in the short term.

Further announcements with respect to the Bridging Loan, the Working Capital Loan, their respective maturity dates and the Company's progress in relation to the Board's examination the Company's alternatives, including re-engaging with PSA International and Gateway Partners, will be made, as appropriate, in due course.

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

Enquiries:

Infrastructure India plc        Sonny Lulla	www.iiplc.com
Cenkos Securities plc 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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STREAXALELANEFF