7 May
2024
Infrastructure India
plc
("IIP" or
the "Company" or, together with its subsidiaries, the
"Group")
Debt Facilities
Update
Infrastructure India plc, an AIM
quoted infrastructure fund investing directly into assets in India,
announces that it has agreed an extension to the maturity dates of
all its debt facilities, being the term loan provided by IIP Bridge
Facility LLC (the "Term Loan"), the working capital loan provided
by GGIC, Ltd. (the "Working Capital Loan") and the bridging loan
provided by Cedar Valley Financial (the "Bridging Loan"). The Term
Loan has also been increased by a further US$2.5 million for
general working capital purposes and funding of its underlying
assets.
Each of IIP's lenders has agreed to
extend the maturity date of the respective loans to 15 July 2024 to
accommodate the revised expected timeline to closing a transaction
for the sale of DLI. In addition, IIP has reached agreement with
IIP Bridge Facility LLC to increase its term loan by a further
US$2.5 million, taking the principal to US$121.5 million, for
general working capital purposes and funding of its underlying
assets.
The Term Loan is currently a US$119 million
principal secured facility provided to IIP's wholly owned Mauritian
subsidiary, Infrastructure India Holdco, originally announced in
April 2019. The loan carries an interest rate of 15% per annum,
calculated in a manner that yields a 15% IRR for the lender and is
secured on all assets of Infrastructure India Holdco, including
100% of the issued share capital of Distribution Logistics
Infrastructure India, DLI's parent company. The current amount of
interest accrued is approximately US$100 million. The maturity date
of 15 May 2024 has been extended to 15 July 2024 (the "Maturity
Extensions" applying collectively to all loan maturity extensions
set out in this announcement).
The unsecured Working Capital Loan was
originally provided to the Group in April 2013 by GGIC, Ltd. in an
amount of US$17 million and increased to US$21.5
million in September 2017. The Working Capital Loan carried an
interest rate of 7.5% per annum on its principal amount. The Group
and GGIC, Ltd. agreed to increase its interest rate to 15% per
annum from 1 April 2019. The current amount of interest
accrued is approximately US$32 million. The maturity date of 15 May
2024 has been extended to 15 July 2024 (a "Maturity
Extension").
The unsecured Bridging Loan was originally
provided to the Group in June 2017 by Cedar Valley Financial and
was subsequently increased in multiple tranches to US$64.1
million in March 2019. The Bridging Loan carried an
interest rate of 12.0% per annum on its principal amount. The Group
and Cedar Valley Financial previously agreed to increase its
interest rate to 15% per annum from 1 April 2019. The current
amount of interest accrued is approximately US$66 million. The
maturity date of 15 May 2024 has been extended to 15 July 2024 (a
"Maturity Extension").
The Company will make a further
announcement in due course.
Related Party
Transaction
IIP Bridge Facility LLC and Cedar Valley
Financial are affiliates of GGIC, Ltd., which is,
directly and indirectly, interested in 75.4% of the Company's
issued share capital. Under the AIM Rules for Companies (the "AIM
Rules"), IIP Bridge Facility LLC, Cedar Valley Financial and GGIC,
Ltd. are each, therefore, deemed to be related parties of the
Company, and the Term Loan increase and the Maturity
Extensions are related party transactions pursuant
to Rule 13 of the AIM Rules.
The independent directors of IIP,
being M.S. Ramachandran and Graham Smith, consider, having
consulted with Strand Hanson Limited in its capacity as the
Company's nominated adviser, that the increase in the Term
Loan and the Maturity Extensions are fair and reasonable insofar as
the shareholders of IIP are concerned.
The
information contained within this announcement is deemed by the
Company to constitute inside information as stipulated under the
Market Abuse Regulation (EU) No. 596/2014 as it forms part of
United Kingdom domestic law by virtue of the European Union
(Withdrawal) Act 2018, as amended.
- Ends -
Enquiries:
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Infrastructure India plc
Sonny Lulla
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www.iiplc.com
Via Novella
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Strand Hanson Limited
Nominated Adviser
James Dance / Richard
Johnson
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+44 (0) 20 7409 3494
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Singer Capital Markets
Broker
James Maxwell - Corporate
Finance
James Waterlow - Investment Fund
Sales
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+44 (0) 20 7496 3000
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Novella
Financial PR
Tim Robertson / Safia
Colebrook
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+44 (0) 20 3151 7008
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