Infrastructure India plc Loan Extensions (9788S)
June 28 2018 - 1:32PM
UK Regulatory
TIDMIIP TIDMTTM
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 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
Novella +44 (0) 20 3151 7008
Financial PR
Tim Robertson / Toby Andrews
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END
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