Infrastructure India plc Increase of Bridging Loan (3229J)
March 29 2018 - 2:00AM
UK Regulatory
TIDMIIP TIDMTTM
RNS Number : 3229J
Infrastructure India plc
29 March 2018
29 March 2018
Infrastructure India plc
("IIP", the "Company" and together with its subsidiaries the
"Group")
Increase of Bridging Loan
Infrastructure India plc, an AIM quoted infrastructure fund
investing directly into assets in India, announces that it has
agreed a US$3.0 million increase of the existing US$23.0 million
unsecured bridging loan facility (the "Bridging Loan"). The
Bridging Loan was originally provided to the Company in June 2017
by Cedar Valley Financial ("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 and to US$23.0
million in February 2018.
The enlargement of the Bridging Loan will provide the Group with
additional capital whilst it continues to progress its ongoing
financing discussions.
The Company continues to be in advanced negotiations with a
third party in relation to a potential financing. Whilst
negotiations have taken longer than had been anticipated, these
discussions continue to progress. The new funding would enable the
Company to repay the Bridging Loan and the existing US$21.5 million
working capital loan provided to the Company by GGIC, Ltd. ("GGIC")
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.
Enlargement of Bridging Loan
The Company announces that it has agreed a further increase to
the Bridging Loan which was previously provided to the Company by
Cedar Valley such that a further US$3.0 million (the "Additional
Funds") has been made available to the Company under the Bridging
Loan (the "Bridging Loan Enlargement").
The Company intends to draw down the Additional Funds
immediately. On draw down of the Additional Funds the Bridging
Loan, now totalling US$26.0 million, will be fully drawn down.
The Company has paid Cedar Valley a fee of 1.0% of the
Additional Funds in connection with the Bridging Loan
Enlargement.
The other terms of the Bridging Loan, which carries an interest
rate of 12.0% per annum and is due for repayment on the earlier of:
(i) 15 days following the completion of a specific significant
financing of IIP currently under negotiation; and (ii) 29 June
2018.
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") Cedar Valley
is, therefore, deemed to be a related party of the Company and the
Bridging Loan Enlargement is a related party transaction 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 Enlargement 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 www.iiplc.com
Sonny Lulla
Smith & Williamson Corporate Finance Limited
Nominated Adviser & Joint Broker
Azhic Basirov / Ben Jeynes +44 (0) 20 7131 4000
Nplus1 Singer Advisory LLP
Joint Broker
James Maxwell - Corporate Finance
James Waterlow - Investment Fund Sales +44 (0) 20 7496 3000
This information is provided by RNS
The company news service from the London Stock Exchange
END
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