Infrastructure India plc Extensions of Existing Loans (2155R)
20 September 2017 - 3:01AM
UK Regulatory
TIDMIIP TIDMTTM
RNS Number : 2155R
Infrastructure India plc
19 September 2017
19 September 2017
Infrastructure India plc
("IIP", the "Company" and together with its subsidiaries the
"Group")
Extensions of Working Capital Loan and Bridging Loan
Infrastructure India plc, an AIM quoted infrastructure fund
investing directly into assets in India, announces that it has
agreed a further extension of, and increase in, the US$17 million
working capital loan facility (the "Existing Loan") provided to the
Company in April 2013 by GGIC, Ltd ("GGIC") and an extension of the
US$8.0 million unsecured bridging loan facility (the "Bridging
Loan") with Cedar Valley Financial ("Cedar Valley"), an affiliate
of GGIC.
The extension of the Existing Loan and the Bridging Loan will
enable the Company to continue to progress its ongoing financing
discussions.
Further to the Company's announcement of 8 August 2017, the
Company also announces that it is now in advanced and exclusive
negotiations with a third party provider of finance in relation to
a potential financing. The new funding would enable the Company to
repay the Existing Loan and 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.
Extension of Existing Loan
The Company announces that it has agreed a further extension of
the Existing Loan which was previously provided to the Company by
GGIC such that a further US$4.5 million has been made available to
the Company under the Existing Loan and that the maturity date of
the Existing Loan has been extended from 30 September 2017 to 31
December 2017 (the "Loan Extension"). The additional US$4.5 million
has been immediately drawn down by the Company and the Existing
Loan, now totalling US$21.5 million, is fully drawn down and
carries an interest rate of 7.5% per annum.
The interest payment which would have been due under the
Existing Loan on 30 September 2017, together with the additional
interest accrued from then until 31 December 2017, has been
deferred to 31 December 2017.
There are no arrangement or commitment fees payable by the
Company in relation to the Loan Extension.
Extension of Bridging Loan
The Company also announces that it has agreed an extension of
the Bridging Loan such that the backstop date for the maturity of
the Bridging Loan has been extended from 30 September 2017 to 31
December 2017 (the "Bridging Loan Extension"). The Bridging Loan,
which carries an interest rate of 8.0% per annum (payable in cash
on maturity), is fully drawn down and will now mature, together
with interest due under the Bridging Loan at maturity, on the
earlier of: (i) on demand by Cedar Valley; and (ii) 31 December
2017.
There are no arrangement or commitment fees payable by the
Company in relation to the Bridging 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 related parties of the
Company and the Loan Extension and the Bridging 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 Loan Extension and the
Bridging 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 Via Cubitt Consulting
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
Cubitt Consulting Limited
Financial Public Relations
Simon Brocklebank-Fowler +44 (0) 20 7367 5100
This information is provided by RNS
The company news service from the London Stock Exchange
END
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