Infrastructure India plc Increase of Bridging Loan (9280B)
September 26 2018 - 2:01AM
UK Regulatory
TIDMIIP TIDMTTM
RNS Number : 9280B
Infrastructure India plc
26 September 2018
26 September 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$2.0 million increase of the existing US$43.4 million
unsecured bridging loan facility previously provided to the Company
by Cedar Valley Financial (the "Bridging Loan").
The enlargement of the Bridging Loan will provide the Group with
additional capital ahead of completion the conditional proposed
financing with PSA International and Gateway Partners as detailed
in the Company's announcement dated 31 July 2018 (the "Proposed
Financing"). Following IIP shareholder approval of the Proposed
Financing at an extraordinary general meeting on 24 August 2018,
the parties continue to progress towards completion of that
transaction.
The Proposed Financing will enable the Company to repay the
Bridging Loan, in whole or in part, 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 remains in discussions with Cedar Valley Financial
("Cedar Valley") and GGIC, Ltd ("GGIC") in relation to the possible
partial repayment of the Bridging Loan and the existing US$21.5
million working capital loan provided to the Company by GGIC
following the completion of the Proposed Financing and with a view
to further extending the maturity of both the Bridging Loan and the
Working Capital Loan.
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$2.0 million (the "Additional
Funds") has been made available to the Company under the Bridging
Loan (the "Bridging Loan Enlargement").
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 a number of tranches, most recently to
US$43.4 million in August 2018.
The Company intends to draw down the Additional Funds
immediately. On draw down of the Additional Funds the Bridging
Loan, now totalling US$45.4 million, will be fully drawn down.
Under the Bridging Loan Enlargement the Company will pay to
Cedar Valley a fee of 1 per cent. of the Additional Funds provided
to the Company.
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 the Proposed Financing; and
(ii) 18 October 2018.
Further announcements will be made, as appropriate, in due
course.
Related Party Transaction
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
Novella +44 (0) 20 3151 7008
Financial PR
Tim Robertson / Toby Andrews
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END
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